Sales of previously owned homes rose to their highest level in more than six years, according to a newly released report from the National Association of Realtors.
The May index of pending home sales from NAR jumped 6.7-percent to 112.3, the highest since December 2006.
Lawrence Yun, the NAR’s chief economist, sees “pent-up demand” as a driving force, reports the Wall Street Journal.
“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 Yun.
“The housing market is pretty healthy,” Guy Lebas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia, tells Bloomberg News. “When you buy a home, either new or existing, you’ve got to furnish it. It’s sort of the secondary benefits of greater home sales that support growth.”
Photo Above: 520 N. Arden Drive, Beverly Hills