Pending home sales skims along bottom
- Prior was -4.9%
- Index vs 74.3 prior revised 274.4
- Pending home sales for February 2024 rise 1.6% versus 1.5% expected
- Index for February 75.6
- Sales are down 7% from a year ago
Looking at the regional breakdowns:
- The Northeast Pending Home Sales Index (PHSI) decreased by 0.3% from the previous month to 63.4, marking a 9.0% decline from February 2023.
- In the Midwest, the PHSI surged by 10.6% to 81.6 in February, a decrease of 2.5% compared to one year ago.
- The South PHSI experienced a 1.1% increase to 89.5 in February, but fell 8.5% from the previous year.
- The West index dropped by 6.5% in February to 57.1, reflecting a 7.9% decrease from February 2023.
Pending home sales are off of signed contracts.
Active listings are up 6% according to Redfin.
From the National Associations of Realtors Lawrence Yun:
"The high-cost regions in the Northeast and West experienced pullbacks due to affordability challenges, Home prices rising faster than income growth is not healthy and adds challenges for first-time buyers. There will be a steady rise in inventory from recent growth in home building. Additionally, many sellers, who delayed listing in the past two years, will begin to put their homes on the market to move to a different home that better fits their new life circumstances – such as changes in family composition, jobs, commuting patterns and retirees wanting to be closer to their grandkids."
