In yet another sign of stabilization within the U.S. housing market, pending
home sales continued the climb upward in March, the National Association of
Realtors (NAR) reported Tuesday. NAR's Pending Homes Sales Index (PHSI), a forward-looking indicator based on
contracts signed in March, rose 5.3 percent from February and was 21.1
percent above March of last year. This increase follows an 8.3 percent jump
in February and affirms that a surge of home sales is unfolding for the
spring home buying season, NAR said. The month-to-month jump in pending sales surpassed analysts' predictions.
According to a Reuters poll, analysts were expecting pending home sales to
inch up just 4 percent in March. On a seasonally-adjusted basis, pending home sales have now increased for
two consecutive months. And on an unadjusted basis, March marked the third
straight month of growth. The PHSI in March varied from region to region. The index in the South
surged 12.7 percent from February and was 28.3 percent above March of 2009.
In the West, the PHSI increased 1.9 percent from the month prior and was 8.8
percent higher than a year earlier. The index in the Midwest nudged up 1.2
percent from February and was 18.5 percent above March of last year. The only region to post a month-to-month decline was the Northeast, where
pending home sales fell 3.3 percent. However, the PHSI in the Northeast
remained 27.2 percent higher than a year ago. Lawrence Yun, NAR chief economist, said the combination of favorable
affordability conditions and the homebuyer tax credit bolstered pending home
sales in March. But now that the tax credit has expired, Yun believes sales
will decline in the months to come. "Clearly the home buyer tax credit has helped stabilize the market. In the
months immediately following the expiration of the tax credit, we expect
measurably lower sales," he said. "Later in the second half of the year, and
into 2011, home sales will likely become self-sustaining if the economy can
add jobs at a respectable pace, and from a return of buyer demand as they
see home values stabilizing."Yun said another encouraging sign is the improvement in the availability of
jumbo and second-home mortgages. He said as bank balance sheets strengthen,
it is just a matter of time before lending of non-government-backed
mortgages steadily opens up.
home sales continued the climb upward in March, the National Association of
Realtors (NAR) reported Tuesday. NAR's Pending Homes Sales Index (PHSI), a forward-looking indicator based on
contracts signed in March, rose 5.3 percent from February and was 21.1
percent above March of last year. This increase follows an 8.3 percent jump
in February and affirms that a surge of home sales is unfolding for the
spring home buying season, NAR said. The month-to-month jump in pending sales surpassed analysts' predictions.
According to a Reuters poll, analysts were expecting pending home sales to
inch up just 4 percent in March. On a seasonally-adjusted basis, pending home sales have now increased for
two consecutive months. And on an unadjusted basis, March marked the third
straight month of growth. The PHSI in March varied from region to region. The index in the South
surged 12.7 percent from February and was 28.3 percent above March of 2009.
In the West, the PHSI increased 1.9 percent from the month prior and was 8.8
percent higher than a year earlier. The index in the Midwest nudged up 1.2
percent from February and was 18.5 percent above March of last year. The only region to post a month-to-month decline was the Northeast, where
pending home sales fell 3.3 percent. However, the PHSI in the Northeast
remained 27.2 percent higher than a year ago. Lawrence Yun, NAR chief economist, said the combination of favorable
affordability conditions and the homebuyer tax credit bolstered pending home
sales in March. But now that the tax credit has expired, Yun believes sales
will decline in the months to come. "Clearly the home buyer tax credit has helped stabilize the market. In the
months immediately following the expiration of the tax credit, we expect
measurably lower sales," he said. "Later in the second half of the year, and
into 2011, home sales will likely become self-sustaining if the economy can
add jobs at a respectable pace, and from a return of buyer demand as they
see home values stabilizing."Yun said another encouraging sign is the improvement in the availability of
jumbo and second-home mortgages. He said as bank balance sheets strengthen,
it is just a matter of time before lending of non-government-backed
mortgages steadily opens up.
via Ping.fm
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