Pending Home Sales Break Trend, Rising After Two Months of Declines

By RISMedia Staff

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.

M&R Realty Best Realtor in Lexington SC West Columbia 2 20DecBack

Regional Breakdown:

+6.1% MoM — 97.9 PHSI
+16.7% YoY

-3.7% MoM — 98.6 PHSI
+14.1% YoY

+2.9% MoM — 137.2 PHSI
+27.9% YoY

+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®

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