Pending home sales across the U.S. hit a decade high last month, likely thanks to low interest rates and job growth.
The sales index for homes under contract rose to 116.3 in April, the highest level seen since February 2006, the Wall Street Journal reported. Pending sales increased by 5.1 percent from March and saw a year-over-year increase of 4.6 percent, according to the National Association of Realtors.
“U.S. housing-market activity continues to improve, and all indications thus far point to a strong spring selling season,” Barclays economist Jesse Hurwitz told the newspaper.
While the increases show a stronger housing market, new home supply is contracting and prices are rising. Some economists are worried the dwindling inventory may eventually halt the housing market’s improvements.
The tightening of the new-home supply caused a 9.7 percent year-over-year price increase in April. Last month saw the highest median sales price on record at $321,000. [WSJ] — Kathryn Brenzel