The National Association of Realtors (NAR) released its Pending Home Sale Index data for April 2015, showing a 3.4% increase in pending home sale activity from March 2015. The index value for pending home sales was 112.4, up from 108.7 reported last month. This month’s index value is the highest recorded in the past 5 months.
Lawrence Yun, chief economist at NAR, suggested these increases in pending home sales contracts are indicative of a warming sale market. “Homeowners looking to sell this spring appear to be in the driver’s seat, as there are more buyers competing for a limited number of homes available for sale.”
The Pending Home Sales Index is a real estate indicator based on the number of pending sales of existing homes. A pending sale usually means that there is an agreement between the buyer and seller, but the transaction is not yet finalized. The number of pending sale contracts recorded by NAR determines the index value for that month. For reference, an index value of 100 is equal to the pending sale contract activity in 2001, the first year that this index was published.