Pending Home Sales Fell 0.8% in March

Washington, DC, April 27, 2017—The Pending Home Sales Index declined 0.8% to 111.4 in March from 112.3 in February according to the National Association of Realtors.

Despite last month's decrease, the index is 0.8% above a year ago.

Lawrence Yun, NAR chief economist, says sparse inventory levels caused a pullback in pending sales in March, but activity was still strong enough to be the third best in the past year. "Home shoppers are coming out in droves this spring and competing with each other for the meager amount of listings in the affordable price range," he said. "In most areas, the lower the price of a home for sale, the more competition there is for it. That's the reason why first-time buyers have yet to make up a larger share of the market this year, despite there being more sales overall."

Pointing to revealing data from the March Realtors Confidence Index, Yun worries that the painfully low supply levels this spring could heighten price growth—at 6.8% last month—even more in the months ahead. Homes in March came off the market at a near-record pace, and indicating an increase in the likelihood of listings receiving multiple offers, 42% of homes sold at or above list price (the second highest amount since NAR began tracking in December 2012).