NAR: Pending Home Sales Increase 6.1% in March; Down 0.6% YoY
From the NAR: Pending Home Sales Jumped 6.1% in March Pending home sales increased 6.1% in March – the greatest month-to-month increase since December 2023 (+7.0%) – according to the National Association of REALTORS®. The Northeast experienced month-over-month losses in transactions, while the Midwest, South and West saw gains, which were most substantial in the South. Year-over-year, contract signings grew in the Midwest but fell in the Northeast, South and West – with the Northeast undergoing the greatest decrease. The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – augmented 6.1% to 76.5 in March. Year-over-year, pending transactions lessened by 0.6%. An index of 100 is equal to the level of contract activity in 2001. "Home buyers are acutely sensitive to even minor fluctuations in mortgage rates," said NAR Chief Economist Lawrence Yun. "While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential home buyers, fueled by ongoing job growth." ... The Northeast PHSI dropped 0.5% from last month to 62.5, down 3.0% from March 2024. The Midwest index expanded 4.9% to 77.7 in March, up 1.4% from the previous year. The South PHSI soared 9.8% to 94.1 in March, down 0.4% from a year ago. The West index climbed 4.8% from the prior month to 58.6, down 2.0% from March 2024. emphasis addedNote: Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in April and May.
From the NAR: Pending Home Sales Jumped 6.1% in March
Pending home sales increased 6.1% in March – the greatest month-to-month increase since December 2023 (+7.0%) – according to the National Association of REALTORS®. The Northeast experienced month-over-month losses in transactions, while the Midwest, South and West saw gains, which were most substantial in the South. Year-over-year, contract signings grew in the Midwest but fell in the Northeast, South and West – with the Northeast undergoing the greatest decrease.Note: Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in April and May.
The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – augmented 6.1% to 76.5 in March. Year-over-year, pending transactions lessened by 0.6%. An index of 100 is equal to the level of contract activity in 2001.
"Home buyers are acutely sensitive to even minor fluctuations in mortgage rates," said NAR Chief Economist Lawrence Yun. "While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable build-up of potential home buyers, fueled by ongoing job growth."
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The Northeast PHSI dropped 0.5% from last month to 62.5, down 3.0% from March 2024. The Midwest index expanded 4.9% to 77.7 in March, up 1.4% from the previous year.
The South PHSI soared 9.8% to 94.1 in March, down 0.4% from a year ago. The West index climbed 4.8% from the prior month to 58.6, down 2.0% from March 2024.
emphasis added
