The Pending Home Sales Index rose 1.4 percent to 110.5 in March, compared with 109.0 in February, and is 1.4 percent higher than the 109.0 reported in March 2015, according to the National Association of Realtors.
March's PHSI is the highest reading since May 2015 and the 19th consecutive year-over-year increase.
The PHSI results signal a "solid" start to the spring buying season, said Lawrence Yun, NAR chief economist, in a statement.
“Despite supply deficiencies in plenty of areas, contract activity was fairly strong in a majority of markets in March,” he said. “This spring’s surprisingly low mortgage rates are easing some of the affordability pressures potential buyers are experiencing and are taking away some of the sting from home prices that are still rising too fast and above wage growth.”
Regionally, the PHSI increased 3.2 percent to 97.0 in the Northeast, 18.4 percent above March 2015. In the Midwest, the Index grew 0.2 percent to 112.8, 4 percent above March 2015. The South reported a PHSI increase of 3 percent to a level of 125.4, 0.6 percent lower than a year ago. The PHSI in the West declined 1.8 percent in March to 95.3, 7.9 percent below March 2015.
