Pending Home Sales Inch Up

pending sale  paul sakuma  AP Photo creditMHProNews has learned from bloomberg pending home sales of previously-owned homes for March rose 1.1 percent following a revised 3.6 percent jump in February, which was the biggest increase since October 2010, according to figures from the National Association of Realtors (NAR). The increase was one tenth of one percent above what a survey of 37 economists had projected.

The rise is attributable to low interest rates and an improving labor market. In addition, rising home values may encourage people to sell their homes. The trend is up, it’s just slow and uneven,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York. “Things are improving, but the cycle’s going to be drawn out.

However, gross domestic product (GDP), the value of all goods and services rose at an annualized pace of only 0.2 percent in the first quarter, down from the 2.2 percent increase in the previous quarter.

According to the NAR, purchases rose 13.4 percent in March over the same month last year on an adjusted basis, the best rate since October 2012. February sales rose 12.5 percent over that same month in 2014.

NAR’s Chief Economist Lawrence Yun said, “While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news. It indicates this year’s activity is being driven by more long-term homeowners.” ##

(Photo credit: Associated Press/Paul Sakuma)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

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