Pending home sales increased 1.5% from February to March, but remained 1.1% below the year-ago level, according to the National Association of Realtors’ monthly pending home sales report.
According to the National Association of Realtors’ monthly pending home sales report, pending home sales in March increased 1.5% from the previous month, but were still 1.1% below the year-ago level.
The number of contracts signed increased month-over-month in the Northeast and South, but decreased in the Midwest and West. Only the South recorded a year-on-year increase.
“Despite rising mortgage rates, contract numbers increased in March, indicating there is pent-up demand for housing,” said NAR Chief Economist Lawrence Yun. “If we have more supply of inventory, we can translate that demand into increased home sales.”
The South led the region’s performance with a 3.9% monthly increase and 2.3% annual increase. In the Northeast, sales increased by 4.4% from the previous month, but fell by 6.5% from the previous year. The Midwest fell 1.3% from February and 3.1% year over year, while the West fell 2.6% for the month and 1.7% for the year.
Of the 50 largest metropolitan areas, Kansas City, Missouri, topped the list with an annual increase of 14.9%, followed by Milwaukee-Waukesha at 13.5% and Austin-Round Rock-San Marcos (Texas) at 12.8%, according to Realtor.com Economics data. Phoenix; Raleigh, North Carolina; Portland, Oregon. Richmond and Virginia Beach, Virginia. Dallas-Fort Worth; Washington, DC also recorded year-over-year increases.
Yun attributed South Korea’s performance to a combination of price cuts and job growth over the past year. He said affordable new builds should be prioritized given first-time and younger buyers are more sensitive to mortgage rates.
NAR’s Pending Home Sales Index tracks signed contracts on existing homes and serves as a leading indicator of closed sales, which typically close after one to two months.
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