NEW YORK - Pending home sales rose 6.0% to a reading of 110.9 in April from a revised 7.1% increase to 104.6 in March, originally reported as a 5.3% gain to 102.9, according to an index released today by the National Association of Realtors.
Thomson Reuters’ poll of economists had predicted a 108.0 reading.
Year-over-year the pending homes sales index was up 22.4% from last April, when the index was 90.6.
Regionally, pending sales were mostly higher. The Northeast saw a 29.5% increase to 97.9, while sales rose 4.1% to 104.2 in the Midwest. In the South sales slipped 0.6% to 123.9, while in the West, pending sales increased 7.5% to 107.9.
“There were concerns that only a small pool of buyers were left to take advantage of the tax credit extension. But evidently the tax stimulus, combined with improved consumer confidence and low mortgage interest rates, are contributing to surging sales,” NAR Chief Economist Lawrence Yun said. “The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs,” he said.
“The home buyer tax credit brought close to 1 million additional buyers into the market, which is now helping the trade-up market and has significantly improved the inventory situation. This stabilized home prices more quickly and has preserved about $900 billion in home equity; in turn, that is keeping additional households from going underwater and risking foreclosure,” Yun said.
