Pending home sales rose 1.6% in February
Pending home sales in February rose by 1.6% nationwide from where they were in January, but that number doesn't necessarily tell the whole story. The report from the National Association of Realtors® (NAR) highlights how the Pending Home Sales Index (PHSI) increased to 75.6 in February, though year-over-year transactions were down by 7%. An index of 100 is equal to the contract activity in 2001.
The northwest and western regions saw drops in pending home sales — homes that have gone on contract but not yet closed, while the south and midwest saw increases. Out of all four regions, the midwest posted the biggest increase by far, but that number was counterbalanced by the lower performance of the south and especially the west. In the case of all four regions, each lagged behind the pending home sales from a year ago.
"While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year," said NAR Chief Economist Lawrence Yun. "Ongoing job gains are clearly increasing demand along with more inventory."
Regional breakdown
Yun added, "The high-cost regions in the Northeast and West experienced pullbacks due to the affordability challenges. Home prices rising faster than income growth is not healthy and adds challenges for first-time buyers."
Here's how the pending housing report looks for February by region:
- Northeast: down 0.3% to 63.4, down 9% from February 2023
- Midwest: up 10.6% to 81.6, down 2.5% from February 2023
- South: up 1.1% to 89.5, down 8.5% from February 2023
- West: down 6.5% to 57.1, down 7.9% from February 2023
While there are ups and downs across regional markets, it's not a bad idea to keep in mind that you should "date the rate, but marry the house." Your personal journey toward homeownership starts with a single step, and working with a local loan officer can help you make the most of the housing market in your area.
Source: https://www.nar.realtor/newsroom/pending-home-sales-rose-1-6-in-february
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