In a press release issued Wednesday, June 29, 2011, Realtor.org reported that May’s housing activity indicates a rise in home sales in the second half of the year. The projected increase is due to a strong rise in Pending home sales in May, with all regions showing gains from a year ago. According to Realtor.org:
“The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 8.2% to 88.8% in May from an upwardly revised 82.1 in April and is 13.4% higher than the 78.3 reading in May 2010. The data reflects contracts but not closings, which normally occur with a lag time of one or two months.”
The article implies that this “absorption of inventory” will play an important role in stabilizing prices, a sure sign of improvement for the housing market, and welcome news for homeowners and buyers.
Article in full available here.