Real Estate, Selling Like Hot Cakes Again

According to USAToday.com (2013 The Associated Press), the number of people who signed contracts to buy U.S. homes jumped in May to the highest level in more than six years, suggesting people are seeking to buy before mortgage rates rise further. The National Association of Realtors says that its seasonally adjusted index for pending home sales rose 6.7% to 112.3 last month. That’s the highest level since December 2006. Signed contracts have risen 12.1% in the past 12 months.Sales of previously occupied homes jumped above the 5 million in May for the first time in 3 ½ years, evidence that the housing recovery is growing steadily.Sales last peaked 5 million in November 2009. During that month and October 2009, a home-buying tax credit briefly inflated the sales pace. Prior to that, sales hadn’t been above 5 million since July 2007. However, before you get too excited and thing we are out of the woods; that’s still below the 5.5 million annual sales that are consistent with a healthy market. New home sales also jumped in May. They rose 2.1% to a seasonally adjusted annual rate of 476,000, the fastest pace in five years.