The National Association of Realtors reported the Pending Home Sales Index (PHSI) increased 3.4% in April which is 14% above April of 2014 and the highest level since May 2006. Pending home sales are considered a leading indicator because they track contract signings which are tabulated in existing home sales when the contract closes in 30-60 days.
“Realtors are saying foot traffic remains elevated this Spring despite limited and in some cases severe inventory shortages in many metro areas,” said NAR’s chief economist Lawrence Yun.
Chart courtesy of National Association of Home Builders