Pending home sales increased in March after posting two consecutive months of declines, according to the National Association of REALTORS® (NAR). Regionally, all areas except one experienced month-over-month gains in March; however, each area saw year-over-year growth.
The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, increased 1.9% to 111.3 in March. Since last year, contract signings increased 23.3%. An index of 100 is equal to the level of contract activity in 2001.
Regional Breakdown:
Northeast
+6.1% MoM — 97.9 PHSI
+16.7% YoY
Midwest
-3.7% MoM — 98.6 PHSI
+14.1% YoY
South
+2.9% MoM — 137.2 PHSI
+27.9% YoY
West
+2.9% MoM — 94.5 PHSI
+29.8% YoY
What the Industry Is Saying:
“The increase in pending sales transactions for the month of March is indicative of high housing demand. With mortgage rates still very close to record lows and a solid job recovery underway, demand will likely remain high.
“Low inventory has been a consistent problem, but more inventory will show up as new home construction intensifies in the coming months, as well as from a steady wind-down of the mortgage forbearance program. Although these moves won’t immediately replenish low supply, they will be a step forward.” — Lawrence Yun, Chief Economist, National Association of REALTORS®
For more information, please visit www.nar.realtor.
