Pending 窪蹋勛圖厙 Sales Increase for First Time in Three Months
A gauge of signed contracts to purchase previously-owned U.S. homes increased in February for the first time in three months, highlighting uneven progress in the industry, according to data released March 28 from the National Association of Realtors in Washington.
Highlights of Pending February 窪蹋勛圖厙 Sales
Index rose 3.1% month over month (estimated 2% gain) after a downwardly revised 5% decrease.
Gauge fell 4.4% year over year on an unadjusted basis after 1.9% decline.
Key Takeaways
While the month-over-month gain shows demand for housing is still getting support from steady hiring, the market is facing several headwinds.
Buyers are up against a persistent shortage of affordable listings to choose from, property prices continue to climb, and mortgage costs are rising. Whats more, the Realtors group expects winter weather to weigh on demand in the Northeast.
RELATED: Economic growth revised higher on spending, inventories
The NAR currently projects 2018 home sales will match 2017s 5.51 million. The group expects the median selling price of a previously owned home to increase around 4.2% this year after 5.8% in 2017.
Officials Views
The expanding economy and healthy job market are generating sizeable homebuyer demand, but the miniscule number of listings on the market and its adverse effect on affordability are squeezing buyers and suppressing overall activity, Lawrence Yun, NARs chief economist, said in a statement.
窪蹋勛圖厙owners are already staying in their homes at an all-time high before selling and any situation where they remain put even longer only exacerbates the nations inventory crunch, he said. The NARs 2017 Profile of 窪蹋勛圖厙 Buyers and Sellers showed the median tenure a homeowner stayed in their house before selling was 10 years, the highest in records back to 1981.
Other Details
Purchases rose in all four regions last month, including a 10.3% jump in the Northeast and a 3% gain in the South.
Economists consider pending sales a leading indicator because they track contract signings. Purchases of existing homes are tabulated when a deal closes, typically a month or two later.
With assistance by Jordan Yadoo
