Pending home sales rise in March
Pending home sales are back on the rise, according to the National Association of Realtors (NAR).
The Pending Home Sales Index (PHSI) increased 3.8% to 105.8 in March, up from 101.9 in February.
Year-over-year contract signings declined 1.2%, however, making this the 15th straight month of annual decreases. The PHSI is a forward-looking indictor based on contract signings.
The PHSI in the Northeast declined 1.7% to 90.5 in March and is now 0.4% below a year ago. In the Midwest, the index grew 2.3% to 95.3 in March, 5% lower than March 2018.
Pending home sales in the South increased 4.4% to an index of 127.2 in March, which is 0.7% higher than last March. In the West, the index jumped 8.7% in March to 95.1 and fell only 1.6% below a year ago.
According to NAR Chief Economist Lawrence Yun, existing-home sales should begin a consistent ascension over the next few months.
“We are seeing a positive sentiment from consumers about home buying, as mortgage applications have been steadily increasing and mortgage rates are extremely favorable,” Yun said.
Despite a rise in pending contracts, Yun said current sales activity is underperforming.
“In the year 2000, we had 5 million home sales. Today, we are close to that same number, but there are 50 million more people in the country," he said. "There is a pent-up demand in the market, and we should see a better performing market in the coming quarters and years."
The Pending Home Sales Index (PHSI) increased 3.8% to 105.8 in March, up from 101.9 in February.
Year-over-year contract signings declined 1.2%, however, making this the 15th straight month of annual decreases. The PHSI is a forward-looking indictor based on contract signings.
The PHSI in the Northeast declined 1.7% to 90.5 in March and is now 0.4% below a year ago. In the Midwest, the index grew 2.3% to 95.3 in March, 5% lower than March 2018.
Pending home sales in the South increased 4.4% to an index of 127.2 in March, which is 0.7% higher than last March. In the West, the index jumped 8.7% in March to 95.1 and fell only 1.6% below a year ago.
According to NAR Chief Economist Lawrence Yun, existing-home sales should begin a consistent ascension over the next few months.
“We are seeing a positive sentiment from consumers about home buying, as mortgage applications have been steadily increasing and mortgage rates are extremely favorable,” Yun said.
Despite a rise in pending contracts, Yun said current sales activity is underperforming.
“In the year 2000, we had 5 million home sales. Today, we are close to that same number, but there are 50 million more people in the country," he said. "There is a pent-up demand in the market, and we should see a better performing market in the coming quarters and years."