Both taking opportunities and making them have driven the housing market recovery to new accomplishments. For Q1 this year, existing home sales were at their highest level since Q4 of 2009 and new homes sales were the highest since Q3 of 2008. Last week, the National Association of Realtors (NAR) reported Pending Homes Sales were up 1.5% in March and up 7.0% compared to March a year ago. In fact, this measure of contracts signed on existing homes has now been above year-ago readings for 23 months in a row!
The NAR’s chief economist said, “Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply.” He added: “Job additions and rising household wealth will continue to support housing demand.” Finally, the 20-city composite of the S&P/Case-Shiller Home Price Index for February came in UP 9.3% versus a year ago. This was the highest annual growth rate since May 2006. In addition, all 20 cities showed price gains for at least two months in a row. That hasn’t happened since early 2005.