NAR: Pending Home Sales Are at a 9-Year High

A new report from the National Association of Realtors shows that pending home sales in April rose to their highest level since May 2006.

With the 2015 home buying season underway, this data becomes a significant indicator of the health of housing markets across the country – which usually tells us a lot about the economy overall.

The NAR’s Pending Home Sales Index has become a reliable, forward-looking indicator. It rose 3.4% from March to April, is currently a big 14% above April.

NAR said that this is the largest annual increase in the index since September 2012.

We have to keep in mind that this index only tracks the number of home-purchase contracts signed. It will take months to see how many of these signings result in closed home sales.

Still, this is a promising sign. After a troubling first quarter – with actual declines in economic growth coupled with lousy job growth – it’s encouraging to see renewed signs of health in the economy.