- Pending sales of previously owned home shot up by 6.7% in April.
- The biggest monthly gain in 7.5 years, according to a report on Tuesday that reinforced the views that the US recession is easing.
- Economist had expected the report to show pending home sales just rise 0.5%
- National association of realtors said Pending home sales index, rose to 90.3 in April from 84.6 in March.
- This is now the 3rd largest straight monthly increase and the largest jump since October 2001. The monthly gain took the index 3.2% above its year-ago level in the latest sign the battered US housing sector was stabilizing.
"It's a very positive and encouraging number. It plays into the 'green shoots,' economy stabilization story," - William Hornbarger (senior fixed income strategist at Wachovia Securities in St. Louis.)
- While the volume of existing home sales has increased in recent months, nearly half involve properties have gone through foreclosure or which have been sold for a loss.
- Lawrence Yun, senior economist at the Realtor’s trade group, credited improved home affordability and a new government program that provides an $8,000 tax credit for first-time homebuyers for the surge in US buying activity.
YoY comparision across the region:
- Northeast Region +0.8%
- Midwest +11.1%
- South +3.5%
- West +2.9%
Source: Reuters, Barron's, RTT News & Paper Economy
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