pending home sales grow in march

WASHINGTON (April 29, 2021) – Pending home sales increased in March, snapping two consecutive months of declines, according to the National Association of Realtors®. All but one of the four major U.S. regions experienced month-over-month gains in March, while each area recorded year-over-year growth.

The Pending Home Sales Index (PHSI),* www.nar.realtor/pending-home-sales, a forward-looking indicator of home sales based on contract signings, rose 1.9% to 111.3 in March. Year-over-year, contract signings jumped 23.3%, with the difference due in large part to the pandemic-induced lockdown in March 2020. An index of 100 is equal to the level of contract activity in 2001.

Infographic: March 2021 Pending-Home Sales

See and share this infographic.

“The increase in pending sales transactions for the month of March is indicative of high housing demand,” said Lawrence Yun, NAR’s chief economist. “With mortgage rates still very close to record lows and a solid job recovery underway, demand will likely remain high.”

“Low inventory has been a consistent problem, but more inventory will show up as new home construction intensifies in the coming months, as well as from a steady wind-down of the mortgage forbearance program,” Yun continued. “Although these moves won’t immediately replenish low supply, they will be a step forward.”

Existing-home sales are projected to rise by 10% in 2021 to reach 6.2 million in 2021, while the median home price is anticipated to increase by 9% in 2021 to $323,900.

Housing starts are forecasted to reach 1.6 million in 2021 and 1.7 million in 2022, providing much-needed relief to the housing inventory deficit. Mortgage rates are expected to modestly climb higher over the next two years, to 3.2% in 2021 and 3.5% in 2022, as inflation rises due to a stronger economy and higher fiscal spending. The economy is anticipated to expand 4.5% in 2021 and 3.5% in 2022.

-National Association of REALTORS

Don’t Stop Here

More To Explore

Most homeowners have exited mortgage forbearance programs—but those who are left are the most vulnerable

As of March 2021, about two-thirds of homeowners who signed up for some type of mortgage forbearance during the Covid-19 pandemic have exited the programs, according to new research from the New York Federal Reserve. Only 35% of borrowers, or about 2.2 million homeowners, who signed up for forbearance remain in these programs, the New York Fed found.

Read More »

maximizing sunlight in your house

Natural light adds warmth and beauty to a home, as well as providing a free mood booster. Here are four ways to maximize the amount of sunlight in your space. Choose lighter paint colors. Walls painted in creamy whites or light grays with a satin finish will brighten up a room and reflect more light.

Read More »

Buyers Expect the House Hunt to Get Easier Home buyers are up against limited inventories of homes for sale and struggling to triumph in a competitive market. But they’re hopeful for a turnaround over the next few months. Thirty-three percent of prospective buyers recently surveyed are hopeful that it will be easier to find a

Read More »

pending home sales grow in march

WASHINGTON (April 29, 2021) – Pending home sales increased in March, snapping two consecutive months of declines, according to the National Association of Realtors®. All but one of the four major U.S. regions experienced month-over-month gains in March, while each area recorded year-over-year growth. The Pending Home Sales Index (PHSI),* www.nar.realtor/pending-home-sales, a forward-looking indicator of home

Read More »

savor the season with a spring bucket list

Last year, many people were stuck at home for much of the spring season. In order to safely enjoy the changing season now, consider creating a spring bucket list of activities to do on your own or with family members. Here are some ideas to get you started. STOP AND SMELLL THE ROSES. Spring is

Read More »

How to avoid home buyer turnoffs

Optimize each and every scheduled showing of your home by avoiding these common buyer turnoffs. Foul Odors. Eliminate any odors related to pets, smoking, mildew, and food. Let in some fresh air through the windows, place an open container of baking soda in smelly rooms and thoroughly clean carpets, furniture and curtains. An Untidy Exterior.

Read More »

LOGIN

Not a member? Sign up!

LETS START YOUR HOME BUYING JOURNEY!