Pending Home Sales Surge

News from the housing sector has been improving and very rapidly. First Tuesday's new home sales report which absolutely surged and now a similar surge in the pending home sales index, up 5.1 percent in April for a third straight gain and pointing to greater acceleration for final sales of existing homes. The West, where existing home sales have been lagging, shot up a monthly 11.4 percent in today's report with the South showing additional strength, up 5.1 percent. This week's data, coming right at the beginning of the Spring season, have turned around the housing outlook, from modest growth to sharp growth in what is the latest indication of household strength.

Recent History Of This Indicator:
Existing home sales have been on the upswing, as indicated in advance by the pending home sales report which tracks contract signings. Pending sales for April are expected to post a very solid 0.8 percent gain following March's surprising 1.4 percent jump. Gains for pending sales would underscore the strength of the existing home market.