I always like posting positive signs that we are seeing in the real estate market. There is so much negativity in the news, I think it’s important to take note that there are positives in the market and it’s not all gloom and doom. Here we see an unexpected rise in the number of houses that were put under contract signaling that buyers are itching to come back in the market, they are just picking their spots and continue to be cautious.
NEW YORK (CNNMoney.com) — The number of homes under contract to be sold rose unexpectedly in April as buyers went bargain hunting, according to a report released Monday.
The Pending Home Sales Index from the National Association of Realtors (NAR) rose to 88.2 in April, up 6.3% from March’s reading of 83 and the highest level since October. The increase defied the consensus estimate of economists polled by Briefing.com, which forecast pending sales to fall by 1%.
Despite the increase, April’s reading remains down 13.1% from the same period last year, and off 29% from the index’s peak in April 2005.
“Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” said Lawrence Yun, chief economist for the NAR in a statement.
The Pending Home Sales Index was strongest in the Midwest, where it jumped 13%, and weakest in the Northeast, where it declined 1.9%.
Posted by Carter Brown
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