By REALTORMag
Contract signings for home sales jumped in March, which could indicate a reversal of slowing many markets have experienced this spring. Pending home sales—a forward-looking indicator of home sales based on contract signings—climbed 6.1% in March compared to February, the National Association of REALTORS® reported Wednesday. The news on contract signings falls on the heels of the latest existing-home sales numbers, down nearly 6% in March compared to February and down 2.4% from a year earlier.
The rise in pending home sales could hint at a turnaround, says Lawrence Yun, NAR’s chief economist. “While contract signings are not a guarantee of eventual closings, the solid rise in pending home sales implies a sizable buildup of potential home buyers, fueled by ongoing job growth.” Yun also attributes the March bump to a slight dip in interest rates last month.
