NAR released a summary of pending home sales data showing that February’s pending home sales pace declined 10.6% last month and fell modestly 0.5% from a year ago.
Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead Existing Home Sales data by 1 to 2 months.
Two four regions showed gains from a year ago. The South had the largest incline of 2.9% followed by West with a gain in contract signings of 1.9%. The Midwest had the biggest decline of 6.1%, followed by the Midwest, with a drop of 3.9%.
From last month, all regions showed declines in contract signings. The South led all regions with the largest decrease of 13.0%, followed by the Midwest, which fell 9.5%. The Northeast dipped 9.2%, followed by the West, which had a decline of 7.4%.
The U.S. pending home sales index level for the month was 110.3.
February’s contract signings bring the pending index above the 100-level mark for the 10th consecutive month.
The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing home sales above the 5 million mark.