The Pending Home Sales Index in February increased 3.1 percent to 106.9, a 12 percent jump from its February 2014 level and the highest it has been since June 2013 (109.4), according to the National Association of Realtors.
February was the 10th consecutive month with a PHSI of more than 100—considered an average level of activity.
“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,” said Lawrence Yun, NAR chief economist, in a statement. “These factors bode well for the prospect of an uptick in sales in coming months.”
The increase in the PHSI was largely due to an 11.6 percent rise to an index of 120.2 in Midwest pending home sales in February. The West also saw an increase of 6.6 percent to 102.1.
The South and Northeast saw declines of 1.4 and 2.3 percent to PHSI levels of 120.2 and 81.7, respectively.
The NAR predicts total existing-home sales in 2015 will be around 5.25 million, an increase of 6.4 percent from 2014.
