Last month -2.5% revised to -3.0%
The US pending homes sales for February (these are contracts to purchase) rose by a greater than expected 3.5% for the month. The YoY (NSA) rose 5.1% vs -0.5% estimate. The prior month was revised to -3.0% from -2.5% MoM. The YoY was -1.5% vs -0.9% previously reported.
Regionally:
- Northeast sales fell -0.2% vs. -3.5% in January.
- Midwest sales rose 11.4% vs. -4.9% in January.
- Sell sales rose 2.1% vs. my 0.7% in January
- West sales advanced 0.7% vs. - 5.2% in January
The pending home index was 109.1 on a seasonally adjusted basis. This is the highest level since July. According to the national Association of realtors. A reading of 100 corresponds with the average level of contract at activity in 2001. So the reading is "historically healthy".
Job gains has been a stimulus to house purchases although price increases may have prices some out of the market. Last week existing home sales (pending home sales lead to existing home sales a month or two down the road) fell by a greater than expected 7.1%. Supply is light increasing prices. That is ok if the buyers are willing to buy at the higher levels - and banks approve. The existing homes data suggest a little push back.
Nevertheless, the hope is that the increased buying activity will prompt more people to put their house on the market. That in turn make for a more balanced market, but lower more affordable prices
Overall, a good/great start to the spring selling season, but we will see if the contracts lead to closed sales in a month or so.....
