Pending Home Sales Up +1.9% in March

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®.

URGENT: 2021 Results Released. New FREE On-Line Web Event Reveals 17 Surprising Secrets Of The Top 100 Millionaire Agents. Get Your FREE Spot For The On-Line Webinar Now. When You Attend This Event You Will Have A Sense Of Relief Knowing You Can FINALLY Laugh At Your Money Worries – If You Follow This Simple Plan. Learn How To Generate 100’s of Motivated Leads Without Coming Off As A Pushy Salesperson and Losing Your Soul. Learn Now How To Become One of the 1000s of Agents Making HUGE Money NOW Who Never Thought They Could.