Pending home sales increased 6.7% to a reading of 90.3 in April from 84.6 in March, its third straight increase, according to an index released yesterday by the National Association of Realtors.
Thomson Reuters’ poll of economists had predicted an 85.0 reading.
Year-over-year the pending homes sales index was up 3.2% from last April, when it was at 87.5.
NAR’s housing affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, originally reported as 166.7. The 174.8 reading is second only to January’s 176.9.
Regionally, pending sales were mostly higher. The Northeast saw a 32.6% increase to 78.9 in April, while sales gained 9.8% to 90.4 in the Midwest. In the South sales declined 0.2% to 93.0, while in the West they jumped 1.8% to 94.8.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” said NAR chief economist Lawrence Yun. “Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
