Pending
home
sales
increased
modestly
in
February
despite
rising

mortgage
rates,
growing
1.6%
month
over
month,
according
to
the
newest

data
released
Thursday
by
the


National
Association
of
Realtors
(NAR). 

NAR’s
Pending
Home
Sales
Index
increased
to
75.6
in
February,
up
from
74.3
in
January.
On
a
year-over-year
basis,
pending
sales
were
down
7%.
For
comparison,
the
index
is
benchmarked
at
a
reading
of
100
based
on
2001
contract
activity.  

“While
modest
sales
growth
might
not
stir
excitement,
it
shows
slow
and
steady
progress
from
the
lows
of
late
last
year,”
NAR
chief
economist
Lawrence
Yun
said
in
a
statement.
“Ongoing
job
gains
are
clearly
increasing
demand
along
with
more
inventory.”

Meanwhile,

new
home
sales
fell
slightly
in
February
but
were
still
5.9%
higher
than
one
year
ago.

Existing
home
sales
surged
9.5%
from
January
to 
February
due
to
steadily
growing

inventory.
Overall,
active
inventory
grew
14.8%
annually
in
February,
according
to

data
from

Realtor.com. 

An
influx
of
more
affordable
inventory
also
granted
home
prices
a
certain
stability
compared
to
a
year
ago,
according
to
Realtor.com.
For
instance,
the
number
of
available
homes
priced
between $200,000
to
$350,000
increased
by
20.6%
annually
in
February
2024.

Overall,
both
new
home
sales
and
pending
home
sales
leveled
off
compared
to
December’s
surge
because
of
rising
mortgage
rates.

The
Midwest
and
South
posted
monthly
gains
in
pending
transactions,
while
the
Northeast
and
West
recorded
losses.
On
a
year-over-year
basis,
all
four
U.S.
regions
registered
losses,
NAR
reported.

“There
will
be
a
steady
rise
in
inventory
from
recent
growth
in
home
building,”
Yun
added.
“Additionally,
many
sellers,
who
delayed
listing
in
the
past
two
years,
will
begin
to
put
their
homes
on
the
market
to
move
to
a
different
home
that
better
fits
their
new
life
circumstances,
such
as
changes
in
family
composition,
jobs,
commuting
patterns
and
retirees
wanting
to
be
closer
to
their
grandkids.”   

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