Pending home sales report increase
According to the National Association of REALTORS (NAR), pending home sales increased by 1.5% in March, with the largest gains in the Northeast and South. The largest year-over-year increases are seen in the midwest in Kansas City, Miss. (14.9%) and Milwaukee–Waukesha, Wis. (13.5%). While the NAR reported a 1.1% year over year decrease in pending home sales, price cuts and regional job growth are a definitive factor where the market is moving.
“Contract signings rose in March despite higher mortgage rates, pointing to pent-up housing demand,” said NAR Chief Economist Dr. Lawrence Yun. “A greater supply of inventory will help translate that demand into more home sales.”
“Demand sensitivity to mortgage rates is greatest among first-time buyers, particularly younger buyers,” Yun said. “As a result, boosting supply and new-home construction should focus on smaller, more affordable homes.”
