The National Association of Realtors’ pending home sales index rose 1.6% in February, driven by positive job growth and an increase in available housing, according to data released Thursday.
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Pending home sales rose 1.6% in February as modest inventory gains and higher hiring gave consumers more choices Data released on Thursday By the National Association of Realtors.
The Pending Home Sales Index (PHSI), which indicates future sales based on contract signings, rose to 75.6 in February, the data showed. On an annual basis, pending sales fell 7%. The Midwest and South experienced the most significant growth, while the Northeast and West posted monthly losses.
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Lawrence Yun | Chief Economist, National Association of Realtors
“While the modest sales growth may not spark excitement, it shows slow but steady progress since the lows late last year,” NAR Chief Economist Lawrence Yun said in a statement. “Continued Employment growth will obviously increase demand and more inventory.”
USA 275,000 new jobs created There were 229,000 new jobs created in February, an increase from the previous month.
The Northeast region saw the largest annual decline in PHSI, down 9% from February 2023. The regional index was 63.4, down 0.3% from the previous month.
At the same time, the PHSI in the South decreased by 8.5% year-on-year and 1.1% quarter-on-quarter to 89.5.
The western region index fell 7.9% from February 2023 and 6.5% from January 2024 to 57.1.
The Midwest PHSI fell only 2.5% year-on-year, jumping 10.6% from January 2024 to 81.6.
“High-cost areas in the Northeast and West have experienced a correction due to affordability challenges,” Yun added. “House prices rising faster than incomes are unhealthy and will create challenges for first-time buyers.”
Yun noted that the recent increase in homebuilder activity should continue to add to inventory. A recent report from the Census Bureau showed that housing starts surged 10.7% in February from the previous month.
“Inventory will steadily rise due to the recent increase in home construction,” he said. “In addition, many sellers who have delayed listing their homes over the past two years will begin to put their homes on the market to move to different homes that better suit their new living circumstances. , such as changes in family composition, jobs, commuting patterns and lifestyles. Retirees want to be closer to their grandchildren.”
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