High home sales levels could be on the way in the Los Angeles real estate market, with the number of properties put under contract on the rise across the country.
The Pending Home Sales Index, which predicts future closed sales, increased 6.7 percent to 112.3 in May, up from 105.2 in April and a 12.1 percent year-over-year improvement, according to the National Association of Realtors.
"Even with limited choices, it appears some of the rise in contract signings could be from buyers wanting to take advantage of current affordability conditions before mortgage interest rates move higher," said NAR chief economist Lawrence Yun. "This implies a continuation of double-digit price increases from a year earlier, with a strong push from pent-up demand."
With rates moving higher in the final week of June, there could be a run on homes in the near future, as buyers attempt to lock in the most affordable financing.