The National Association of Realtors leading indicator of future home sales jumped 6.7% in May to the highest level since 2006.
“It appears some of the rise in contracts signed could be from buyers wanting to take advantage of current affordability conditions before mortgage rates move higher,” said NAR chief economist Lawrence Yun.
The NAR’s pending sales index was stalled between 104 and 105 since January before jumping to 112 in May.
The pace of sales has reflected the limited inventory of
The pending sales index is based on the number of contracts signed. The actual sales usually occur in a month or two. The PSI is up 12% from May 2012.
In releasing the May pending sales index, NAR economists increased their estimates for home prices and sales.
Yun is forecasting that the national median sales price will rise to nearly $195,000 by yearend, up 10% from 2012. The previous estimate was an 8% increase in prices for 2013.
Meanwhile, sales will rise nearly 8.7% from 2012 to nearly 5.1 million by yearend, according to the new NAR forecast. A month ago, the Realtors were expecting a 7.3% increase in sales.
