Mirroring an uptrend evident in the Hartford area housing market in May, the number of Americans who signed contracts to buy homes rose sharply last month — pushed higher by an influx of spring buying, The Associated Press reports.
The National Association of Realtors says its index of sales agreements for previously occupied homes rose 8.2 percent last month, to a reading of 88.8. That followed April’s seven-month low of 82.1.
A reading of 100 is considered healthy by economists. The last time the index reached that level was in April 2010, the final month when buyers could qualify for a federal tax credit.
The Greater Hartford Association of Realtors recently declared that pending sales — deals in which a buyer has made a firm offer to a seller and is awaiting the sale closing — jumped 41 percent in May to 883 units from 627 the same month last year.
Contract signings are typically a reliable indicator of where the housing market is headed. But the Realtors group says a growing number of buyers have cancelled contracts ahead of closings after appraisals showed the homes were worth less than they bid.
