I think we expect this at this time of year; it supports my yearly mantra that “spring starts early”…. Pending home sales in February increased to their highest level since June 2013, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 3.1 percent in February and has increased year-over-year for six consecutive months. Additionally, the index is above 100 – considered an average level of activity – for the 10th consecutive month.
Lawrence Yun, NAR chief economist, says demand appears to be strengthening as we head into the spring buying season. “Pending sales showed solid gains last month, driven by a steadily improving labor market, mortgage rates hovering around 4 percent and the likelihood of more renters looking to hedge against increasing rents,” he said. “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.”
