Kevin Sears President | Official website
Pending home sales increased 3.4% in March.
Month over month, contract signings rose in the Northeast, South and West but dropped in the Midwest.
Compared to one year ago, pending home sales declined in the Northeast and South while the Midwest and West improved.
WASHINGTON (April 25, 2024) – Pending home sales in March climbed 3.4%, according to the National Association of REALTORS®. The Northeast, South and West posted monthly gains in transactions while the Midwest recorded a loss. Year-over-year, the Northeast and South registered decreases but the Midwest and West improved.
Lawrence Yun, NAR Chief Economist, commented on the latest data, stating, "March's Pending Home Sales Index – at 78.2 – marks the best performance in a year, but it still remains in a fairly narrow range over the last 12 months without a measurable breakout." Yun added, "Meaningful gains will only occur with declining mortgage rates and rising inventory."
Looking ahead, NAR forecasts a positive outlook for the housing market, with existing-home sales expected to rise in the coming years. Yun stated, "Home sales have lingered at 30-year lows, and since 70 million more Americans live in the country now compared to three decades ago, it's inevitable that sales will rise in coming years."
Yun also shared insights on the projected median home prices, noting, "Home prices are expected to rise roughly in line with consumer price inflation and wage growth over the next two years." He added, "Most homeowners are on strong financial footing in current market conditions, with only 2% of sales classified as being distressed."
Discussing the regional breakdown of pending home sales, Yun highlighted the challenges faced by first-time buyers, stating, "Home prices rising faster than income growth is not healthy and adds challenges for first-time buyers." He also noted the expected gradual rise in inventory due to recent growth in home building and sellers listing their homes after delays in the past two years.
The National Association of REALTORS® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
Pending home sales serve as a leading indicator for the housing sector, offering insights into upcoming sales closings. The Pending Home Sales Index is based on pending sales of existing homes, providing valuable information for analyzing market trends and conditions.
As the housing market continues to evolve, NAR remains committed to providing accurate data and forecasts to guide industry professionals and consumers in navigating the real estate landscape.
