- Gary Cameron/Reuters
Pending home sales jumped 5.1% in April over the previous month to the highest level in over a decade.
Compared to last April, sales rose 2.9%, according to a report from the National Association of Realtors (NAR) Thursday.
Economists had estimated that the gauge of housing-contract activity rose 0.7% month-on-month and 0.2% year-on-year, according to Bloomberg.
Sales rose in all regions except the Midwest, where they fell 0.6%.
Even though tight inventories and rising prices are squeezing out buyers in some markets, there were more contract signings than expected, said Lawrence Yun, NAR chief economist.
“The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market,” Yun said in the release.
The data for March were revised higher, to 1.6% month-on-month and 3.2% year-on-year.
Last week, we learned that existing home sales rose more than expected in April. It was the best first quarter for existing sales since 2007, and Yun now has a higher forecast for the year, to 5.41 million, or about 3%.
And, new home sales rose at the fastest pace since the financial crisis, rising 16.6% in April.
Along with that data, economists will be using the pending home sales numbers as confirmation that demand is strong this spring selling season.