Pending home sales match two-year high

WASHINGTON Wed Jun 27, 2012 10:15am EDT

A model home sits for sale in Carlsbad, California June 30, 2011. REUTERS/Mike Blake

A model home sits for sale in Carlsbad, California June 30, 2011.

Credit: Reuters/Mike Blake

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WASHINGTON (Reuters) - Contracts to purchase previously owned U.S. homes matched a two-year high in May, fueling optimism the housing market is poised for a recovery.

The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, rose 5.9 percent to 101.1. The index level matched the two-year high reached in March, while the gain was the largest since October 2011.

Before March, the last time pending home sales were as high was April 2010 when buyers were rushing to beat the deadline for a home-buyer tax credit, which was about to expire, the NAR said.

"The housing market is clearly superior this year compared with the past four years," Lawrence Yun, NAR chief economist said in a statement. "We're on track to see a 9 to 10 percent improvement in total sales for 2012."

Economists polled by Reuters had expected signed contracts, which lead home sales by a month or two, to rise 1.0 percent after a previously reported 5.5 percent drop in April.

(Reporting By Margaret Chadbourn; Editing by Neil Stempleman)

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Comments (3)
CharlieB wrote:
I do not understand why the media continues to use NAR as a source.

Jun 27, 2012 10:30am EDT  --  Report as abuse
Patriot_70 wrote:
We are becoming more optimistic! WE are only months away from the change in presidency and the end of many of these failed stupid policies that are hurting everyone, and yes, it’s starting to look up… IF we survive the last few months of the President’s running disaster.

Jun 27, 2012 10:38am EDT  --  Report as abuse
Gnilhert wrote:
……yes, the Chinese rich are buying up properties as fast as they can!

Jun 27, 2012 10:47am EDT  --  Report as abuse
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