The number of contracts signed in April rose more-than-expected, another sign of increasing demand in the housing sector. Bobbi Rebell reports.
Make it four in a row. The number of contracts signed last month to buy existing homes rose for a fourth straight month, to a nine-year high. That lifted the outlook for the housing market- because those contracts will become sales in a month or two. Moody's Analytics Ryan Sweet: SOUNDBITE: RYAN SWEET, SENIOR ECONOMIST, MOODY'S ANALYTICS (ENGLISH) SAYING: "It's a sellers market. Because inventories are very very lean and that is putting some upward pressure on house prices across the board, both from new and existing home prices, are rising fairly quickly, and that is more of a reflection of a lack of supply. I think as we.. pending home sales showed more and more fence sitters are jumping back into the market." The National Association of Realtors Pending Home Sales hit their highest level since May 2006. Pending home sales increased 14.0 percent from a year ago. That is the largest year-on-year increase since September 2012. SOUNDBITE: RYAN SWEET, SENIOR ECONOMIST, MOODY'S ANALYTICS (ENGLISH) SAYING: "It is really the first time home buyer that is going to be critical to the housing recovery to the rest of this year, and into 2016 and fundamentals are gradually starting to improve for the first time home buyer. The job market is tightening. Rents are rising so it's kind of making the option to buy a home a little bit more appealing to those that are renting currently." Those new home buyers include folks that have been sitting on the fence waiting to buy, as well as millenials moving into stable jobs, and starting families.