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
According to the U.S. Census Bureau, Nevada’s 1.95 percent population growth rate from July 2015 to July 2016 made it the second fastest-growing state in the country. With the state’s official population nearing the three million mark, how is infrastructure keeping up with growth? Major Road P...
Low interest mortgage rates can’t last forever, can they? If you’ve taken out a mortgage or refinanced a mortgage recently, you may have done so because you anticipated that rates would rise. Are rates rising, and are they expected to continue to rise? Let’s take a closer look at mortgage rates...
The pricing on Las Vegas new homes has been drastically reduced over the past few years (along with the rest of the inventory in the Las Vegas real estate market), and it is amazing how affordable some of the luxury new home developments have become. Dunhill Homes has two gorgeous neighborhoods in lush guard gated golf...
Overall availability in the Southern Nevada resale housing market continued to tighten through November 2017, which contributed to rising prices. The single family market posted 1.8 months of effective inventory, while the condo/townhouse segment reported 1.3 months. Median single family pricing reached $261,500 durin...
The Nevada Partners & Culinary and Bartenders Housing Partnership has placed over 560 union families into homeownership since it was created in 2008 and provided approximately $4,000,000 in down payment assistance and closing costs. Key Elements of the Program Include: 1. The down payment assistance loan up...