The number of home buyers signing contracts to buy existing homes jumped nearly six percent in May to the highest level since April of 2010, according to a new report from the National Association of Realtors.
Back then buyers were rushing to beat the deadline for the home buyer tax credit. This spring buying surge was particularly strong out west where the NAR’s Pending Home Sales Index jumped 14.5 percent. Investors are driving the market out West, racing to buy distressed properties and take advantage of today’s very hot rental market.
Realtors say they expect total home sales for 2012 to be up around 10 percent from a year ago, but they caution that low inventory and tight credit, for buyers and builders alike, are holding the market back.