NAR released a summary of pending home sales data showing that February’s pending home sales improved 5.5 percent from last month and are up 2.6 percent from a year ago. February’s inclines show consumer confidence is strong going into the busier months of home purchases.
Pending sales are homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.
Two of the four regions showed inclines from a year ago. The Northeast lead with an increase of 6.6 percent followed by the South 4.2 percent. The West had a decline of 0.2 percent. The Midwest had the biggest decline of 0.6 percent.
From last month, all regions showed gains in pending sales. The Midwest has the biggest increase of 11.4 percent followed by the South with 4.3 percent. The Northeast had an incline of 3.4 percent and the West had the smallest incline of 3.1 percent.
The pending home sales index level for the month was 112.3 for the US. January’s data was unrevised and remained 106.4.
The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing home sales above the 5 million mark.