Pending Home Sales Rose 3.8% in March
Washington, DC, April 30, 2019-The Pending Home Sales Index increased 3.8% to 105.8 in March, up from 101.9 in February, according to the National Association of Realtors. Year-over-year contract signings declined 1.2%, making this the 15th straight month of annual decreases.
Lawrence Yun, NAR chief economist, noted that pending home sales data has been exceptionally fluid over the past several months but predicted that numbers will begin to climb more consistently. "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 noted that sales activity in the West had increased at a relatively stable rate for five consecutive months before the region saw a significant spike in activity in March. "Despite some affordability issues in the West, the numbers indicate that there is a reason for optimism. Inventory has increased, too. These are great conditions for the region."
Pointing to active listings from data at realtor.com, Yun says the year-over-year increases indicate a potential rise in inventory. Denver-Aurora-Lakewood, Colorado, Seattle-Tacoma-Bellevue, Washington, San Francisco-Oakland-Hayward, California, Portland-Vancouver-Hillsboro, Oregon-Washington, and Nashville-Davidson-Murfreesboro-Franklin, Tennessee, saw the largest increase in active listings in March compared to a year ago.
Although pending contracts appear to be on an overall upswing, Yun says current sales activity is underperforming. "In the year 2000, we had five million home sales. Today, we are close to that same number, but there are 50 million more people in the country," he said. "There is a pent-up demand in the market, and we should see a better performing market in the coming quarters and years."