Pending home sales in May hit their highest level since December 2006, the National Association of Realtors (NAR) reported today.

“Even with limited choices, it appears some of the rise in contract signings could be from buyers wanting to take advantage of current affordability conditions before mortgage interest rates move higher,” said Lawrence Yun, chief economist at NAR.  “This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand.”

Pending home sales, a forward-looking indicator based on contracts signed to purchase homes, increased 6.7 percent month over month in May, and were up 12.1 percent from a year ago, according to NAR’s Pending Home Sales Index.

In response to the jump in contract signings, Yun raised his home price forecast for 2013. The economist now predicts that the median existing-home price will rise by more than 10 percent to $195,000. That would be the strongest increase since 2005, when the median price rose by 12.4 percent, NAR said.

The sunny news accompanies a murkier report released by Freddie Mac today that found that mortgage interest rates spiked by their largest weekly margin in 26 years on news that the Federal Reserve could soon begin to taper its stimulus program. Source: NAR

Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×