The U.S. pending home sales grew 3.4% monthly in March after rising 1.6% in February, according to the National Association of Realtors. The indicator, which has recorded its largest increase in three months, has exceeded market expectations, which expected a rise of 0.3%.
The indicator shows that sales increased in March in the West, South and Northeast of the country, although they decreased in the Midwest.
Year-on-year, sales increased 0.1% after falling 7% the previous month. This is its first increase in three months.
The National Association of Realtors expects median home prices to rise 1.8% in 2024 to a record $396,800 (from $389,800 in 2023) and another 1.8% in 2025 to $403,800 (from 2024). It also forecasts a modest reduction (0.6%) in the median price of new homes to $426,100 in 2024 (from $428,600 in 2023), reflecting smaller home construction. The association predicts that the median price of new homes will increase 3.4% to $440,500 in 2025 (from 2024).
“House prices are expected to rise roughly in line with consumer price inflation and wage growth over the next two years,” Yun added. “The majority of homeowners are in strong financial condition under current market conditions, with only 2% of sales being classified as distressed.”
Home sales are expected to steadily improve as home prices continue to reach record levels.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
