Pending home sales increased 1.5% month-over-month in March, while year-over-year sales dropped 1.1%, according to the National Association of Realtors’ Pending Home Sales report.
Pending home sales in the Northeast increased 4.4% month-over-month but decreased 6.5% year-over-year. Pending sales in the Midwest decreased month-over-month (1.3%) as well as year-over-year (3.1%), while in the West they also decreased both month-over-month (2.6%) and year-over-year (1.7%). Pending sales in the South increased both month-over-month (3.9%) and year-over-year (2.3%).
“Contract signings rose in March despite higher mortgage rates, pointing to pent-up housing demand,” NAR Chief Economist Dr. Lawrence Yun said. “A greater supply of inventory will help translate that demand into more home sales.”
“Demand sensitivity to mortgage rates is greatest among first-time buyers, particularly younger buyers,” Yun said. “As a result, boosting supply and new-home construction should focus on smaller, more affordable homes.”
“A good number of markets in the South experienced price cuts over the past year but recorded the strongest job growth,” he added. “That combination should lead to stronger housing market activity in the South this year.”
Read the full report here.
