Good news is being received by the real estate industry. April 2015 enjoyed the highest level of pending sales since 2006. The National Association of Realtors explained the Pending Home Sales Index saw a 3.4 percent increase from March 2015. This was 14 percent higher than last year and was the fourth consecutive month for an increase. April’s numbers were the highest since May 2006.
Economists believe the steady gains in contract activity are proof that buyer demand is strong. Even though there is a limited inventory of homes, spring months have seen a high number of interested buyers. This has propelled sellers into the driver’s seat. Home prices have shot up in most markets.
Although existing home sales decreased in April, the numbers are expected to rebound as summer approaches but will depend on heightened inventory and moderate price growth, which offsets high rates of interest. As long as inventory becomes available, the real estate market can handle interest rates over 4 percent. This allows buyers to obtain affordable mortgages.
The Pending Home Sales Index increased in all four regions of the United States, especially the Northeast and Midwest. By the end of 2015, total existing home sales are projected to reach 5.24 million. This is a rise of 6.1 percent from 2014. For the year, the national median existing home prices are expected to increase as well.
As this activity keeps going, the real estate market is sure to improve. Potential sellers should be encouraged by the reports and realize it is a smart time to list.
