Industry News

Pending real estate sales increase in May

Sales index still below the '05 rate, NAR says

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A National Association of Realtors index that tracks pending home sales increased slightly from April to May but dropped 10.1 percent below the May 2005 index. The Pending Home Sales Index climbed from 111.9 to 113.4 from May to April, a 1.3 percent gain, the association reported. The index is derived from pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed; pending sales typically are finalized within a month or two of signing. An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales, the Realtor trade group reported. The trade group reported that the rise in May, which followed three consecutive months of decline, is "an indication that the market is stabilizing." Regionally, the PHSI in the South was down 1.7 percent in May compared to April, and was 7.3 percent below the May 2...