February's Pending Home Sales Hit Highest Level Since June 2013, Says NAR
Source: Forbes
The number of contracts signed to buy previously-owned homes in February hit the highest level since June 2013, thanks to big leaps in the Midwestern and Western regions, the National Association of Realtors said Monday.
NAR’s Pending Home Sales Index, which tracks contract signings (as opposed to closed sales), rose 3.1% in February to 106.9, from a downwardly revised January level of 103.7. (An index of 100 represents an average level of contract activity.) That level was 12% higher than in February 2014, when the index stood at 95.4, and marks the sixth consecutive month of year-over-year gains. February’s index is at its highest level since June 2013, when the measure stood at 109.4, and surpassed expectations of economists surveyed by Bloomberg ahead of the release.
“Pending sales showed solid gains last month, driven by a steadily-improving labor market, mortgage rates hovering around 4% and the likelihood of more renters looking to hedge against increasing rents,” said Lawrence Yun, NAR’s chief economist. “These factors bode well for the prospect of an uptick in sales in coming months. However, the underlying obstacle – especially for first-time buyers – continues to be the depressed level of homes available for sale.”
A separate report from NAR showed that the share of first-time home buyers increased to 29% in February from 28% in January, marking the first increase since November 2014.
Read more: http://www.forbes.com/sites/erincarlyle/2015/03/30/februarys-pending-home-sales-hit-highest-level-since-june-2013-says-nar/
