By Ian McKendry
WASHINGTON (MNI) – Pending home sales rose 5.1% to an index level
of 94.1 in March, up from a downwardly revised 89.5 in February, the
National Association of Realtors reported Thursday.
“Since reaching a cyclical bottom last June, pending home sales
have posted an overall gain of 24% and demonstrate the market is
recovering on its own,” NAR chief economist Lawrence Yun said.
“The index means modest near-term gains in existing-home sales are
likely, which would be even stronger if tight mortgage lending criteria
returned to normal, safe standards,” Yen added.
The index is 11.4% below its year ago level when it was 106.2 —
although home sales at the time benefitted from government tax
subsidies.
Pending home sales in March fell 3.2% in the Northeast, but rose
3.0% in the Midwest, 10.3% in the South, and 3.1% in the West.
“Based on the current uptrend with very favorable affordability
conditions, rising apartment rents and ongoing job creation,
existing-home sales should rise around 5 to 10 percent this year with
sales growth of lower priced homes likely to outperform high-end homes,”
Yun said.
The pending home sales index is based on pending sales of
existing-home sales and represents about 20% of transactions for
existing-home sales.
The NAR reported existing-home sales increased by 3.7% in March
with all cash transactions making up an all time high of 35% of all
sales; distressed properties made up 40% of sales in March.
** Market News International Washington Bureau: 202-371-2121 **
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