Last week we reported that Existing-home sales jumped in March to their highest annual rate in 18 months but that is a backward looking report.
Pending Home Sales are for contracts that are signed but not yet closed and is more of a leading indicator of where housing is headed. And Pending Home Sales delivered more good news as it rose for the third straight month and hit their best levels since June of 2013.
Lawrence Yun, NAR chief economist, says contract signings picked up in March as more buyers than usual entered this year's competitive spring market."Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year," he said. "While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news. It indicates this year's activity is being driven by more long-term homeowners."
"Demand in many markets is far exceeding supply, and properties in March sold at a faster rate than any month since last summer," he said."This in turn has pushed home prices to unhealthy levels - nearly four or more times above the pace of wage growth in some parts of the country. Simply put, housing inventory for new and existing homes needs to improve measurably to improve affordability."
No comments:
Post a Comment