With the South leading the way, national pending home sales moved up last month. But weather conditions were blamed for a big drop in the Northeast.
As of March, the Pending Home Sales Index — an indication of upcoming sales based on contract signings — was a seasonally adjusted 107.6.
Last month’s U.S. index worked out to an 0.4 percent escalation compared to the downwardly revised level for the previous month. The increase reflects an improvement in the volume of pending home sales.
But the index was off by 3.0 percent versus the downwardly revised level for March 2017.
The National Association of Realtors reported the data on Monday.
“Healthy economic conditions are creating considerable demand for purchasing a home, but not all buyers are able to sign contracts because of the lack of choices in inventory,” NAR Chief Economist Lawrence Yun said in an accompanying announcement. “Steady price growth and the swift pace listings are coming off the market are proof that more supply is needed to fully satisfy demand.
“What continues to hold back sales is the fact that prospective buyers are increasingly having difficulty finding an affordable home to buy.”
In the South, the index landed at 128.6, increasing from February by 2.5 percent — more than any other region. A 2.4 percent gain was reported for the Midwest, with the index there coming in at 101.3.
But a 1.1 percent decline from the prior month was recorded for the West, with the index there slipping 1.1 percent. March’s 90.6 index in the Northeast was a 5.6 percent drop — more than any region.
Yun noted that multiple winter storms and unseasonable cold weather contributed to Northeast weakness.
