After a slow April, pending home sales rebounded in May, reaching the highest reading for the month of May since 2005, according to the National Association of Realtors.
According to just-released numbers, the Pending Home Sales Index rose 8.0 percent last month to 114.7. An index of 100 is equal to the level of contract activity in 2001.
Additionally, contract signings increased 13.1 percent when compared to May 2020 numbers.
Looking at the four major reasons of the U.S., NAR reports that pending sales in the Northeast saw the largest month-to-month increase, up 15.5 percent to 98.5 in May. That’s a 54.6 percent climb from a year ago. The West saw an increase of 10.9 percent in May to 102.0, up 12.5 percent from May 2020.
In the Midwest, the index grew 6.7 percent last month to 107.7, up 7.8 percent from May 2020. And the South saw pending home sales increase by 4.9 percent to an index of 135.5 in May, up 6.1 percent from May 2020.