NAR released a summary of pending home sales data showing that May's pending home sales pace inclined 8.0% last month and rose 13.1% from a year ago. With inventory slightly increasing, a few more options are available to potential home buyers.
Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.
All four regions showed double digit gains from a year ago. The Northeast had the largest incline of 54.6%, followed by West with a gain in contract signings of 12.5%. The Midwest had an increase of 7.8%, followed by the South with the smallest gain of 6.1%.
From last month, all four regions showed gains in contract signings. The Northeast had the largest increase of 15.5%, followed by the West which had an increase of 10.9%. The Midwest had a gain of 6.7%, followed by the South smallest increase of 4.9%.
The U.S. pending home sales index level for the month was 114.7.
May's contract signings bring the pending index above the 100-level mark for the 13-consecutive month.
The 100 level is based on a 2001 benchmark, and is consistent with a healthy market and existing-home sales above the 5 million mark.