Pending home sales improve slightly

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 0.3% to 106.0 in April from 105.7 in March, and is 10.3% above April 2012 when it was 96.1, according to the National Association of Realtors. 

Home contract activity is at the highest level since the index hit 110.9 in April 2010, which was right before the deadline for the home buyer tax credit. Pending sales have been above year-ago levels for the past 24 months.

“The housing market continues to squeak out gains from already very positive conditions,” said Lawrence Yun, NAR chief economist. “Pending contracts so far this year easily correspond to higher closed home sales in 2013.” 

The PHSI in the Northeast jumped 11.5% to 92.3 in April and is 17.7% above a year ago.  In the Midwest, the index rose 3.2% to 107.1 in April and is 15.1% higher than April 2012.  Pending home sales in the South slipped 1.1% to an index of 119.2 in April but are 12.3% above a year ago. The index in the West fell 7.6% in April to 94.6 and is 2.6% below April 2012.