Pending Home Sales Up 1.9% in March

Pending home sales increased 1.9% in March to an index level of 111.3, the National Association of Realtors reports. An index level of 100 is equal to the level of contract activity in 2001. 

Year-over-year, pending home sales increased 23.3%, reflecting the impact of the pandemic-induced lockdowns that suppressed home-buying activity in March 2020.

“Low inventory has been a consistent problem, but more inventory will show up as new home construction intensifies in the coming months, as well as from a steady wind-down of the mortgage forbearance program,” NAR Chief Economist Lawrence Yun said in a statement. “Although these moves won’t immediately replenish low supply, they will be a step forward.”

Regionally, pending home sales increased 6.1% in the Northeast, 2.9% in the South and 2.9% in the West. Pending home sales in the Midwest fell 3.7%.

The full NAR report can be found here.