Existing homes are going like hotcakes, as contracts to purchase previously owned homes hit a nine-year high, The New York Times reports.
The National Association of Realtors’ Pending Home Sales Index, which is based on contracts signed last month, increased 0.9 percent to 112.6, the highest level since April. Pending home contracts usually become sales after a couple of months.
"The recent trend suggests that we will see continued strength in resales in the months ahead. However, the current low inventory levels, which are placing upward pressure on home prices, remain a downside risk," Derek Lindsey, an analyst at BNP Paribas in New York, told The New York Times.
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