Pending home sales rose for the third consecutive month in February, but a 0.8% gain was underwhelming compared with the usual run-up to the spring housing market. Contract signings increased in three U.S. regions but were down 21.1% from February 2022. Still, housing experts say a volatile real estate market may be rounding a corner after contracting at the close of 2022.
Mortgage rates declined in January but rose again in February, and though home prices are beginning to fall in some overheated markets, low for-sale inventory is preventing a major housing downturn in 2023, HousingWire reports.
There’s plenty of reason for optimism, said Lawrence Yun, the NAR’s chief economist.
“After nearly a year, the housing sector’s contraction is coming to an end,” he said in a statement Wednesday. “Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months.”
Advertisement
Related Stories
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others