Is today’s solid report on February contract signings a harbinger of a strong spring for the housing market? It could be.
Pending home sales rose solidly last month (3.5%) to the highest index reading since last July (109.8). The decent increase, led by a robust upswing in the Midwest, was a result of a modest increase in inventory (this happens most years in February) and mortgage rates as low as they’ve been over the past year.
According to Lawrence Yun, NAR chief economist, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers. If this doesn’t occur, sales will likely plateau.
Watch the video to hear more on what Yun expects for the housing market this spring.