Analysts were surprised and elated that for five months in a row now pending U.S. home sales have risen far better than they had expected, which is just another good economic indicator that the nations housing market is making a recovery.
Nationally, pending home sales index rose 3.6 percent to 94.6 in June which is an increase from 91.3 in May. There has not been a five month consecutive gain in the housing market since July 2003.
The numbers are based on signed contracts to purchase previously owned homes which is used as a barometer for future home sales and coincides with other positive trends happening in the residential real estate market.
These gains have been attributed to lower prices, great mortgage rates and the first-time homebuyers tax credit of up to $8,000.
It's expected that existing home sales will gradually rise throughout the remainder of the year and inventory will be gradually absorbed through increased sales.
In the West, the pending home sales index jumped 2.9 percent to 100.4 compared to this time last year.