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Pending home sales, prices climb in May

Posted on Tuesday, July 1, 2014 at 10:05:17 AM

Across the country, lower residential financing rates and a rising number of homes for sale have resulted in improved home sales. This new trend is good news for all buyers and sellers interested in testing their local housing markets.

According to the National Association of Realtors, pending home sales ticked up in May across all four regions monitored by the organization. The strongest gains were experienced in the Northeast and the West. The Pending Home Sales Index rose 6.1 percent on a monthly basis, although it remains 5.2 percent below May 2013's level.

"Sales should exceed an annual pace of 5 million homes in some of the upcoming months behind favorable mortgage rates, more inventory and improved job creation," said Lawrence Yun, NAR chief economist. "However, second-half sales growth won't be enough to compensate for the sluggish first quarter and will likely fall below last year's total."

In addition, CoreLogic reported that home prices have also increased during that time span. In May, figures climbed 8.8 percent on a yearly basis. That uptick was only 1.4 percent compared to April. New highs were felt in several states, including Alaska, Louisiana and Oklahoma.