Real Estate Industry Gets More Good News in May

   

Posted: Jun 3, 2009

The real estate industry is showing more signs of revival, with the latest example being a jump in pending home sales.

The National Association of Realtors reported this week that pending home sales jumped 6.7 percent nationwide, bringing its index of such sales up to 90.3 in April from 84.6 in March. That figure is 3.2 percent higher than the April 2008 figure, when the recession was still in its earlier stages.

Sales were particularly stronger in the Northeast, where the index saw a 32.6-percent gain and a 0.8-percent improvement over last year's figures. The South was the only U.S. region to actually lose ground last month, although its index was still 3.5 percent higher than at this time last year.

"The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline," observed NAR chief economist Lawrence Yun.

For many consumers, falling prices and mortgage rates have made real estate purchases more attractive than in recent months. However, stubborn unemployment and debt levels have left many people with insufficient credit scores to secure an affordable mortgage.