The National
Association of Realtors (NAR) announced on Wednesday that its seasonally adjusted
pending home sales index (PHSI) soared by 6.1 per cent m-o-m to 76.5 in March, following an upwardly revised 2.1 per cent m-o-m increase (from +2.0 per cent
m-o-m) in February. This marked the strongest gain in pending home sales since September
2024 (+7.5 per cent m-o-m).
Economists had forecast
pending home sales to jump by 1.0 per cent m-o-m in March.
On a y-o-y
basis, the index dropped by 0.6 per cent after an unrevised 3.6 per cent fall in February. This was the 4th consecutive y-o-y decline in pending home sales but the weakest in the sequence.
According to
the report, three of four U.S. regions - the
South (+9.8 per cent m-o-m), Midwest (+4.9 per cent m-o-m) and West (+4.8 per
cent m-o-m) - registered monthly increases in pending home sales operations,
while the Northeast (-0.5 per cent m-o-m) recorded a drop.
In y-o-y terms,
the Midwest (+1.4 per cent) posted an advance in pending home sales, but the Northeast
(-3.0 per cent), West (-2.0 per cent), and South (-0.4 per cent) registered decreases.
Commenting on
the latest report, Lawrence Yun, NAR’s chief economist, noted that home buyers
are acutely sensitive to even minor fluctuations in mortgage rates. “While
contract signings are not a guarantee of eventual closings, the solid rise in
pending home sales implies a sizable build-up of potential home buyers, fuelled
by ongoing job growth,” he added.