NAR released a summary of pending home sales data showing that February’s pending home sales pace was down modestly 1.0 percent last month and fell 4.9 percent from a year ago.
Pending sales represent 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.
All four regions showed declines from a year ago. The Northeast had the smallest drop in sales of 2.6 percent followed by the South with a decline of 2.9 percent. The West experienced the biggest dip of 9.6 percent followed by the Midwest with a decline of 6.1 percent.
From last month, two of the four regions showed inclines in contract signings. The South region had the biggest gain of 1.7 percent followed by the West with an increase of 0.5 percent. The Northeast fell 0.8 percent followed by the Midwest with a significant drop of 7.2 percent. The West region had a modest incline of 0.3 percent.
The U.S. pending home sales index level for the month was 101.9. January’s data was revised to 102.9.
February’s incline brings the pending index back above the 100 level mark for the second consecutive month.
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.