by Calculated Risk on 3/27/2025 10:00:00 AM
From the NAR: Pending Home Sales Advanced 2.0% in February
Pending home sales improved 2.0% in February according to the National Association of REALTORS®. The Northeast and West experienced month-over-month losses in transactions – with a larger decrease in the West – while the Midwest and South saw gains, which were greatest in the South. Year-over-year, contract signings dropped in all four U.S. regions, with the Midwest undergoing the greatest reduction.
The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – grew 2.0% to 72.0 in February. Year-over-year, pending transactions declined 3.6%. An index of 100 is equal to the level of contract activity in 2001.
“Despite the modest monthly increase, contract signings remain well below normal historical levels,” said NAR Chief Economist Lawrence Yun. “A meaningful decline in mortgage rates would help both demand and supply – demand by boosting affordability, and supply by lessening the power of the mortgage rate lock-in effect.”
…
The Northeast PHSI fell 0.9% from last month to 62.8, down 2.5% from February 2024. The Midwest index inched up 0.7% to 73.3 in February, down 4.7% from the previous year.The South PHSI jumped 6.2% to 86.0 in February, down 3.4% from a year ago. The West index contracted by 3.0% from the prior month to 55.9, down 3.5% from February 2024.
emphasis added
Note: Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in March and April.
Leave a Reply