Pending home sales for the country increased last month, and the gain was led by activity in the Northeast.
As of last month, the Pending Home Sales Index — a barometer for residential property contract signings — was 112.6.
The index — which stands at its highest level since April 2006 when it came in at 113.7 — was up from a downwardly revised 111.6 a month earlier.
The National Association of Realtors, which reported the data Monday, said the index has increased now five months in a row.
Compared to a year earlier, the index has risen
more than 10 percent — making it nine consecutive months that it has moved higher on a year-over-year basis.
“Housing affordability remains a pressing issue with home-price growth increasing around four times the pace of wages,” NAR Chief Economist Lawrence Yun explained in the report. “Without meaningful gains in new and existing supply, there’s no question the goalpost will move further away for many renters wanting to become homeowners.”
The index climbed 6 percent from April in the Northeast, while it was up 2 percent in the West.
But an almost one percent decline was recorded in the South and the Midwest.
