No Comments

Pending Home Sales Rise 3.2%, Signaling Market Near Bottom

UPDATE 1-U.S. pending home sales rose 3.2 pct in March

For the second straight month, pending sales of existing U.S. homes rose in March supporting views the housing market was close to hitting a bottom. In the first increase since September, US construction spending rose 0.3 percent in March and based on contracts signed in March pending home sales rose 3.2 percent. The rise in signed contracts for home purchases may be attributed to first-time buyers taking advantage of an $8000.00 tax credit. National Association of Realtors chief economist, Lawrence Yun said, “we need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”
The NRA’s Housing Affordability Index, a broad measure of housing affordability using consistent values and assumptions over time examines the relationship between home prices, mortgage interest rates and family income,remained near record highs. The index was 30.8 percentage points higher than a year ago. “The Pending Home Sales Index in the South rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago”.