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, which was originally reported as a 5.3% gain to 102.9, according to an index released yesterday 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.
“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.