Pending home sales in the U.S. made a sharp rebound in May after declines in March and April, a possible sign of real estate and home construction stability after volatile weeks of COVID-19 disruption.
The National Association of Realtors (NAR) reports pending home sales—which include real estate transactions where a contract has been signed, but the transaction has not closed—rose 44.3 percent in May to 99.6 basis points, the highest month-over-month gain in the metric’s history.
“This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” says Lawrence Yun, NAR’s chief economist. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”
Each major region of the U.S. saw month-over-month increases in contract signings, reports NAR. However. Year-over-year contract signings are down 5.1 percent as of May 2020.