Pending home sales spiked 5.5% month over month in February to their highest level in almost a year and the second-highest in almost a decade, according to the National Association of Realtors.
NAR’s Pending Home Sales Index hit 112.3 in February, up from 106.4 in January. Year-over-year, February’s index was higher by 2.6%, its highest level since April 2016 with 113.6 and second-highest since May 2006 with 112.5.
"Buyers came back in force last month as a modest, seasonal uptick in listings were enough to fuel an increase in contract signings throughout the country," said NAR Chief Economist Lawrence Yun. "The stock market's continued rise and steady hiring in most markets is spurring significant interest in buying, as well as the expectation from some households that delaying their home search may mean paying higher interest rates later this year. Last month being the warmest February in decades also played a role in kick-starting prospective buyers' house hunt."
For 2017, existing-home sales are predicted to be around 5.57 million – 2.3% higher than 2016’s 5.45 million. NAR also projected that national median existing-home prices would by 4% this year; last year saw an increase in existing home sales of 3.8% and an increase in prices of 5.1%.
However, tight inventory and poor affordability are still affecting many prospective buyers.
"The homes most buyers are in the market for are unfortunately the most difficult to find and ultimately buy," said Yun. "The country's healthy labor market is translating to greater job security, but affordability is not improving because home prices in some areas are still outpacing incomes by three times or more because of tight supply. How much new and existing inventory there is on the market this spring will determine if sales can reach their full potential and finally start reversing the nation's low homeownership rate."
by Anna Sobrevinas31 Mar 2017
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
Debra Leatham, a star realtor with the #1 Tonnesen Team at Berkshire Hathaway HomeServices Nevada Properties reports that it was a pleasure to represent the seller on the sale of this home at 2228 Port Avenue, Las Vegas, NV 89106. This charming Las Vegas home is located at the end of a cul-de-sac in the quiet, all si...
People don’t know what they don’t know, and what they do know is enough to create false perceptions Key Takeaways Erroneous assumptions about the business can cause a ton of confusion for the public about how the real estate process works. The real estat...
The Magical Forest has become a cherished Las Vegas Christmas tradition. Originally it began as a small wine and cheese party that drew in passersby with its lovely Christmas lights, causing them to stop on their journey through the city and ask for a moment’s admittance. But the Magical Forest of today is a far cry...
Consumer confidence in housing is at an all-time high, with millennials posting strong increases in confidence, according to new data from Fannie Mae. The Fannie Mae Home Purchase Sentiment Index (HSPI) spiked by 5.6 percentage points last month to 88.3, the highest it’s been since Fannie started keeping...