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
It's not as easy as it looks on TV Key Takeaways A real estate agent's job is to make sure everyone else involved in the transaction is doing their job. Agents have to continually shift gears to quickly adapt and respond to customer needs. What does a real estate agent ...
The relationship you have with your real estate agent can set the tone for the entire home buying process. Your agent is supposed to help you find a property you can afford and work with the seller to negotiate the details of the purchase. But problems could arise if you’re on different wavelengths...
Last month, agent Gregory Bass, an agent on the #1 Tonnesen Team at Berkshire Hathaway HomeServices Nevada Properties received a call from an agent in Georgia. They had a client from the South that wanted to purchase a High-Rise Las Vegas condominium close to the Strip. Gregory told them that the Tonnesen Team would...
Score in the Super Bowl of Las Vegas real estate with seller financing on two great homes for sale in the 89074 zip code in the Green Valley area! 2514 Via Di Autostrada Quaint and cozy three bedroom 2 bath 2 car garage home in a storybook Green Valley Ranch community with small park. Light and airy, vaulted ceilings,...
The Tonnesen Team of GreatLasVegasHomes.com would like to take this opportunity to wish everyone a heartfelt "Happy Thanksgiving," and may your homes be blessed with joy. The following is something written by our wonderful Team Manager, Patty Annis, that describes how she feels about this holiday season and being home...