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A Brighter Forecast for Spring?

After a drawn-out downward trend, pending home sales have warmed up, according to the latest National Association of REALTORS® Pending Home Sales Index, based on contract signings.

From December to January, the Index rose 4.6 percent—the first gain month-over-month in more than half a year.

Compared to last January, activity again came up short: down 2.3 percent.

“A change in Federal Reserve policy and the reopening of the government were very beneficial to the market,” says Lawrence Yun, chief economist at NAR. “Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers. Income is rising faster than home prices in many areas and mortgage rates look to remain steady. Furthermore, job creation will help lift home-buying.”

For more information, please visit www.nar.realtor.

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