The National Association of Realtors‘ Pending Homes Sales Index rose 3.8 percent from February to March, breaking a 15-month streak of straight
Despite a steadier course,
the Pending Homes Sales Index, a forward-looking indicator that calculates
total contract signings on existing homes, is still down 1.2 percent
year-over-year, according to National Association of Realtors Chief Economist
Lawrence Yun, who said the change comes as a result of falling mortgage rates
and an uptick in inventory nationwide.
“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
in a prepared statement.
At 8.7 percent, the West
saw the largest spike in sales while the South and the Midwest also saw
significant growth at 4.4 percent and 2.3 percent, respectively. The Northeast,
meanwhile, is still down at 1.7 percent.
“Despite some affordability
issues in the West, the numbers indicate that there is a reason for optimism,”
Yun added. “Inventory has increased, too. These are great conditions for the
While home sales are slated
to improve in the months to come, the annual numbers may be slow to catch up,
according to Danielle Hale, chief economist for realtor.com.
growth suggests improved home sales on the horizon though it may be a bumpy
road to get there,” Hale said in a prepared statement. “In March, lower
mortgage rates and more inventory won out over higher prices and buyer concerns
about the sustainability of economic growth.”
Article by: Inman
Email Veronika Bondarenko
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