February pending home sales increased 3.5 percent to 109.1 on the Pending Home Sales Index, the highest level in seven months and a 0.7 percent year-over-year increase, from a January level of 105.4, according to the National Association of Realtors.
The increase was “promising,” said NAR Chief Economist Lawrence Yun in a statement.
“After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory,” he said. “Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau.”
The PHSI in the Northeast decreased 0.2 percent to 94.0 in February, but is still 12.6 percent higher than in February 2015. The Index increased in the Midwest 11.4 percent to 112.6, a 2.5 percent year-over-year increase. Pending home sales in the South rose 2.1 percent to 122.4, but were 0.4 percent lower than February 2015. In the West, the Index inched up 0.7 percent to 96.4, but was 6.2 percent below the same period in 2015.
