Monday, March 30, 2020

NAR: "Pending Home Sales Increase 2.4% in February"

by Calculated Risk on 3/30/2020 10:03:00 AM

From the NAR: Pending Home Sales Increase 2.4% in February

ending home sales rose in February, climbing for the second consecutive month, according to the National Association of Realtors®. Each of the four major regions saw an increase in month-over-month contract activity, as well as growth in year-over-year pending home sales transactions compared to one year ago.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, grew 2.4% to 111.5 in February. Year-over-year contract signings increased 9.4%. An index of 100 is equal to the level of contract activity in 2001.
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The Northeast PHSI rose 2.8% to 96.3 in February, 5.9% higher than a year ago. In the Midwest, the index increased 4.5% to 110.1 last month, 14.9% higher than in February 2019.

Pending home sales in the South inched up 0.1% to an index of 129.2 in February, a 7.1% increase from February 2019. The index in the West grew 4.6% in February 2020 to 97.1, a jump of 10.8% from a year ago.
emphasis added
This was well above expectations for this index. Note: Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in March and April. Some of these sales will be cancelled or delayed due to COVID-19.