Pending Home Sales: May Posts Record Monthly Gain After Consecutive Declines
Pending home sales reached a 44.3 percent monthly increase in May—a new record, according to the National Association of REALTORS® (NAR).
After two previous months of declines, pending home sales are showing a market rebound, with every major region recording a month-over-month increase.
This has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” said Lawrence Yun, NAR’s chief economist. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”
“More listings are continuously appearing as the economy reopens, helping with inventory choices,” Yun said.
“New home sales took a similar upward turn last week, but today’s pending data is a more important indicator of market activity since it covers existing homes, which made up roughly 80 to 90 percent of sales in recent years. This move confirms that May closings could represent a low-point for home sales, with June and July numbers looking much better,” Danielle Hale, chief economist at realtor.com®, said in a statement.
Trending on RIS Media 7.3.2020
