Key Highlights
- Increase of +1.9% in March after two months of declines
- Pending home sales increase nationwide except in Midwest
Pending Homes Sales Grow +1.9% in March
The National Association of REALTORS® (NAR)reported that pending home sales increased +1.9% in March. This +1.9% increase follows two consecutive months of declines.
NAR’s Pending Home Sales Index (PHSI)is a great indicator of future sales based on contract signings. And, by the way, contract signings soared +23.3% y/y to an index level of contract activity similar to the level of 2001.
NAR’s Projections of Housing Market through 2021
NAR is predicting that sales of existing homes will rise +10% in 2021. NAR is also projecting median home prices to jump +9% in 2021 to $323,200.
Housing starts are projected to reach 1.6M in 2021 and 1.7M in 2022. Lawrence Yun, NAR’s chief economist, is very pleased with these housing starts projections as, “Low inventory has been a consistent problem, but more inventory will show up as new home construction intensifies in the coming months…these moves won’t immediately replenish low supply, (but) they will be a step forward.”
NAR anticipates that mortgage rates will climb to 3.2% in 2021 and 3.5% in 2022. NAR expects the economy to expand 4.5% in 2021 and 3.5% in 2022.
Regional Breakdown of March Pending Sales
The Northeast PHSI increased +6.1% in March 2021, an increase of +16.7% y/y. In the West, pending home sales grew +2.9% in March and +29.8% y/y.
Pending sales jumped +2.9% during March in the South. In the Midwest, however, the PHSI fell -3.7% m/m. Even so, pending home sales in the Midwest increased +14.1% y/y.
Realtor.com’s Hottest Housing Markets
According to realtor.com,the hottest housing markets in the US as of mid-April included the most improving metros of…
- Jacksonville FL
- Tampa-St. Petersburg-Clearwater FL
- Austin-Round Rock TX
- Riverside-San Bernardino-Ontario CA
- San Antonio-New Braunfels TX.
Thanks to the National Association of REALTORS®.
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