April saw a decade high in pending home sales in the United States. This is a great sign for the economy. The housing market is gaining traction, jobs are being steadily created, and there are historically low interest rates supporting the housing market.
Pending sales of previously owned homes rose 5.1% from last month, according to the National Association of Realtors. The expected increase was only .7%.
The sales index climbed to 116.3, which is the highest level since February 2006. An index of 100 is what the NAR considers "normal" or balanced.
"U.S. housing market activity continues to improve, and all indications thus far point to a strong spring selling season," said Jesse Hurwitz, Barclays economist.
Steady demand for housing has tightened supply and pushed up prices in many markets, but mostly where new jobs are being created. However, that is not deterring buyers.
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