According to the National Association of Realtors, the Pending Home Sales Index slipped slightly in March, from 0.8% to 111.4, down from 112.3 in February, as a direct result of tight inventory nationwide. The Pending Home Sales Index is looked upon as a forward-looking indicator for the market demand.
March’s index figure of 111.4 is still 0.8% higher than 2016.
TRENDS TO TRACK
Buyer demand remains strong
First-time home buyers still battle inventory shortages
NAR found that there is more competition for lower priced homes for sale
First-time buyers are not making up a larger percentage of total sales
Homes are being sold at near record pace – 42% of homes sold at or more than asking price
It remains a sellers’ market
Buyer demand is raising average home price
Mortgage rates have fallen somewhat recently, fueling the buying spree
NAR forecasts existing home sales will total 5.64 million for 2017, an increase of 3.5% from 2016’s 5.45 million.
NAR forecasts that the national median home price will rise 5% year-over-year