US pending home sales rose in March, signalling the housing market
could pick up in the spring selling season despite rising prices, the
National Association of Realtors said on Wednesday.
An exterior view of a house with a pending home sale sign in Palo Alto, California, USA. (Photo: AP/Paul Sakuma)
WASHINGTON: US pending home sales rose in March, signalling
the housing market could pick up in the spring selling season despite
rising prices, the National Association of Realtors said on Wednesday
(Apr 27).
The US economy was in a lull in the first quarter, and the
housing market got off to a sluggish start. But March could mark the
turning point as consumers enter the traditionally stronger second
quarter for home buying.
Pending home sales data, based on contract signings, are a
forward-looking indicator. The NAR's pending home sales index rose 1.4
per cent in March, much stronger than the 0.3 per cent rise expected by
analysts.
The March increase was the second monthly gain in a row, pushing the index to 110.5, its highest reading in 11 months.
Year-over-year, pending home sales were up 1.4 per cent.
Contract signings rose in the Northeast, Midwest and South last month,
but fell in the West.
"Despite supply deficiencies in plenty of areas, contract
activity was fairly strong in a majority of markets in March," said
Lawrence Yun, NAR chief economist, in a statement.
"This spring's surprisingly low mortgage rates are easing
some of the affordability pressures potential buyers are experiencing
and are taking away some of the sting from home prices that are still
rising too fast and above wage growth."
Yun noted that the median home price has surged 38 per cent in the
past three years in the West, where pending sales have declined in four
of the last five months.
"The housing market has been one of the bright spots amid
overall sluggish growth in Q1 and we expect the sector's gradual
improvement to continue through this year," said Barclays analyst Jesse
Hurwitz in a client note.
- AFP/de
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