U.S. PENDING HOME SALES JUMP

According to an April 28 article released by Reuters, contracts to buy previously owned U.S. homes rose in March for the first time in nine months, in the latest sign the housing market was stabilizing after a recent wobble.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in March, increased 3.4 percent to 97.4.
These contracts become sales after a month or two, and the recent rise suggested home resales could rebound in the months ahead after stumbling last summer following a run-up in mortgage interest rates.
“After a dismal winter, more buyers got an opportunity to look at homes last month and are beginning to make contract offers,” said Lawrence Yun, the NAR’s chief economist.
“Sales activity is expected to steadily pick up as more inventory reaches the market, and from ongoing job creation in the economy.”
Existing home sales in March fell to their lowest level in more than 1-1/2 years, but details of the report suggested the downward trend in sales had probably run its course, with housing inventory rising and more first-time buyers coming into the market.

Posted on April 29, 2014 at 5:23 pm
Nancy Low | Category: News

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