Pending home contracts resemble 2006 levels [Video]
Posted on Monday, July 6, 2015 at 2:59:46 PM
Home sales are beginning to resemble 2006 as pending home contract volumes reached levels reminiscent of the pre-recession boom.
This past May, the National Association of Realtors' Pending Home Sales Index rose 0.9 percent from April to May to 112.6, according to a press release. The index is 10 percent higher than it was the same month last year, and represents the highest level of activity since 2006, when it was 113.7.
"This spring is the healthiest and best overall spring since the peak of the housing boom," Jonathan Smoke, chief economist for Realtor.com, explained. "Our report shows that the trends continued in June, which should lead to continued good news through June and into the summer."
Like home sales contracts, prices also increased. And at a pace four times faster than wages, Lawrence Yun, the NAR's chief economist, noted. In the future, this could present a problem for some renters in search of residential financing. For now though, it seems as though home sales are moving along at a healthy rate.
"That is an enormous increase in activity year over year," Smoke said about May's index "[The index] puts an exclamation point on all home sales data points for the month."