The pending home sales index increased to a nine-year high in April, alleviating fears that the decline in existing home sales was part of a larger trend. Growth appears to be broad based across regions.
Home Sales on Course
- The pending home sales index increased 3.4 percent in April after an upwardly revised 1.2 percent gain in the previous month. April marked the highest reading in the index since 2006 and adds optimism that the housing market is finally on the right path.
- Existing home sales fell in April, but the pending home sales numbers indicate that the monthly decline will be short-lived.
Strength Across Regions
- The year-over-year gain of 13.4 percent was led by the West Census region, though double-digit gains were evident in the South and Midwest as well.
- The Northeast finally bounced back after a losing streak and increased 10.1 percent in April alone. Severe winter storms and cold hit the Northeast particularly hard this year. All regions posted a monthly gain in April as well.
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