Pending home sales in March increased by 1.5% from February but were down by 1.1% from one year ago, according to the National Association of Realtors (NAR).
Month-over-month pending home sales increased in the Northeast and South but declined in the Midwest and West. Year-over-year pending home sales were up in the South and fell in the Northeast, Midwest and West.
“Contract signings rose in March despite higher mortgage rates, pointing to pent-up housing demand,” said NAR Chief Economist Lawrence Yun. “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. 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,” Yun added. “That combination should lead to stronger housing market activity in the South this year.”
