Sales + Marketing

Pending Home Sales Increase 55.3% in May

June 30, 2020

In terms of pending home sales, April showers brought May flowers. Last month had record-breaking activity, according to Forbes. Every region, except for the South, saw an increase in month-over-month home sales transactions. The South instead saw a year-over-year increase in pending transactions. The Pending Home Sales Index experienced its highest gain since 2001, with contract signings going from 44.3% to 99.6% in May. Year-over-year dropped by 5.1%. Economists say the housing industry’s recovery shows a steady desire for homeownership.

The National Association of Realtors reported that every major region recorded an increase in month-over-month pending home sales transactions, while the South also experienced a year-over-year increase in pending transactions.

The Pending Home Sales Index, a barometer of home sales based on contract signings, rose 44.3% to 99.6 in May, chronicling the highest month-over-month gain in the index since its inception in January 2001. Year-over-year, contract signings fell 5.1%. An index of 100 is equal to the level of contract activity in 2001.

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