Contract signing in the Midwest and South in February drove pending homes sales to their highest level in nearly 2 years. The National Association of Realtors that it's Pending Home Sales Index rose 3.1% in February over January. The February number is 12% above the level in February 2014.
According to the NAR this is the 6th consecutive month that the index has increased. It has not been this high since June 2013. February is the 10th consecutive month that the index has been above 100 which is considered an average level of activity.
The PHSI is based on the number of contracts executive during the month to purchase existing homes. These contracts are generally reflected as completed sales within 60 days.
According to the NAR's monthly Realtors Confidence Index, the share of first time buyers rose slightly from 28% in January to 29% in February. It was the first increase for this consumer segment since last November.
Several markets remain highly competitive due to supply pressures. Realtors are reporting severe shortages of move in ready properties, and properties in lower price ranges. The return of the first time buyer depends on how quickly inventory shows up on the market.
The NAR forecasts that there will be around 5.25 million existing homes sold in 2015, a 6.4 increase from last year. Home prices are projected to rise about 5.6%.
Pending Home Sales Index is a leading indicator of the spring market. Are you thinking of buying your first home? Or selling and moving to a larger home? Or even down sizing? An appraisal to known the current value of your home is a good place to start.