Increase in pending home sales

In the month of February, the National Association of Realtors reported that its pending home sales index for existing homes had increased 2.1%, following a 2.8% decline in January. The pending homes index measures contract signing for a home, though the sale is not finalized until the mortgage is closed. However, while existing home sales increased in February, new home sales were at a record low. According to The Wall Street Journal, new home sales decreased by 16.9%, along with a 13.9% decrease in median sales price.

 

Although the increase in pending home sales is promising, many analysts do not believe this indicates a recovery in home sales. In a statement to Reuters, market strategist Michael Sheldon said, "Pending home sales data was somewhat better than expected…overall, the data continues to indicate it's probably going to be a while before the housing market gets back on its feet."