PENDING HOME SALES SEE SLIGHT INCREASE IN FEBRUARY

Dated: March 31 2024

Views: 7

Pending home sales increased 1.6% in February, with the Midwest and South each posting monthly gains in transactions, while the Northeast and West posted losses. All four U.S. regions saw year-over-year decreases, however, according to a March 28 report from the National Association of REALTORS® (NAR).

The Pending Home Sales Index (PHSI)—a forward-looking indicator of home sales based on contract signings—increased to 75.6 in February (an index of 100 is equal to the level of contract activity in 2001). Pending transactions were down 7% year-over-year in February.  

“While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year,” said NAR Chief Economist Lawrence Yun. “Ongoing job gains are clearly increasing demand along with more inventory.”

Yun also noted that the high-cost regions in the Northeast and the West experienced losses as a result of affordability changes, a challenge for prospective buyers looking to get off the sidelines and purchase their first home. 

“The high-cost regions in the Northeast and West experienced pullbacks due to affordability challenges. Home prices rising faster than income growth is not healthy and adds challenges for first-time buyers,” explained Yun.

“There will be a steady rise in inventory from recent growth in home building,” he added. “Additionally, many sellers, who delayed listing in the past two years, will begin to put their homes on the market to move to a different home that better fits their new life circumstances—such as changes in family composition, jobs, commuting patterns and retirees wanting to be closer to their grandkids.”

“After three years of unusual spring housing markets, we should not expect this one to necessarily feel ‘normal,’” said Bright MLS Chief Economist Dr. Lisa Sturtevant. “Homebuyers have been resilient in the face of elevated mortgage rates and low inventory, but household savings rates are down and household debt is rising, making some individuals and families feel more cautious. Inventory will increase, though the number of homes available for sale will still be relatively low. As a result, I expect more home sales this spring, but the spring housing market could extend into summer as homebuyers wait for lower rates and more listings.”

ORIGINAL POST: Rismedia

TROY PROPERTY GROUP has access to unparalleled educational programs, state-of-the-art technology tools that enable the team to do everything faster and more efficiently, and up-to-date information on Northern Virginia real estate trends. Let's work together to find your dream home! Let's work together to assist you in building wealth through real estate.Contact us to learn more.

Blog author image

Doris Carrillo

Today’s buyers and sellers need a trusted resource that can guide them through the complex world of real estate. With my knowledge and commitment to providing only the best and most timely infor....

Latest Blog Posts

FED CHAIR: ‘NO HURRY TO CUT’ RATES UNTIL THERE’S SUSTAINED PROGRESS ON INFLATION

Getting inflation under control remains priority No. 1 at the Federal Reserve. New inflation data out Friday shows that U.S. prices moderated in February, led by a cooling in the cost of services

Read More

CONSUMER CONFIDENCE SEES LITTLE CHANGE IN MARCH

Consumer confidence saw little movement in March, falling slightly from 104.8 in February to 104.7, according to the latest data from The Conference Board. This follows a large drop in,

Read More

PENDING HOME SALES SEE SLIGHT INCREASE IN FEBRUARY

Pending home sales increased 1.6% in February, with the Midwest and South each posting monthly gains in transactions, while the Northeast and West posted losses. All four U.S. regions saw year-over

Read More

PRICES TICKED UP IN FEBRUARY OVERALL, JUSTIFYING FED’S CAUTION ON LOWERING RATES

The Consumer Price Index (CPI) increased 0.4% in February on a seasonally adjusted basis, after rising 0.3% in January, the U.S. Bureau of Labor Statistics reported on March 12. It marked the

Read More