- Posted March 29, 2013
- Tweet This | Share on Facebook
Signed contracts to buy U.S. homes dips slightly
By Martin Crutsinger
AP Economics Writer
WASHINGTON (AP) -- Fewer Americans signed contracts to buy homes in February, but the level stayed near a three-year high, and analysts believe sales of previously occupied homes will keep rising in the coming months.
The National Association of Realtors said Wednesday that its seasonally adjusted index for pending home sales dipped to 104.8 in February. That's down from January's reading of 105.2 -- the highest since April 2010, when a homebuyer's tax credit was boosting sales.
Signed contracts are 8.4 percent higher than a year ago.
There is generally a one- to two-month lag between a signed contract and a completed sale.
In February, completed sales of previously occupied homes rose to a seasonally adjusted pace of 4.98 million, the fastest in more than three years. The gains in both signed contracts and completed sales point to a housing recovery that is strengthening, although re-sales remain below the 5.5 million that are consistent with healthy markets.
Steady hiring and near record-low mortgage rates have encouraged more Americans to buy homes more than six years after the housing market started to collapse. More people are also moving out on their own after living with friends and relatives in the recession. That's driving a big gain in apartment construction and also pushing up rents.
Pending home sales rose 0.4 percent in the Midwest and 0.1 percent in the West last month. They fell 2.5 percent in the Northeast and 0.3 percent in the South.
One concern is that a shortage of available homes is limiting sales in many markets. More people are also starting to put their homes on the market, which could help sales in the coming months.
The Realtors' group last week said that the number of available homes for sale rose 10 percent last month, the first monthly gain since April. Even with the gain, the inventory of homes for sale was still 19 percent below a year ago.
A limited supply of homes for sale has helped drive prices higher.
U.S. home prices rose 8.1 percent for the 12 months that ended in January, according to the Standard & Poor's/Case-Shiller 20-city index. That's the fastest annual pace since June 2006. Prices rose in all 20 cities surveyed and eight markets posted double digit gains.
Stable price gains should encourage more people to buy and put their homes on the market, keeping the housing recovery going. And higher home prices make people feel wealthier, which leads consumers to spend more and drives more economic growth.
Published: Fri, Mar 29, 2013
headlines Oakland County
- Annual Dinner & Meeting
- FORCE Team arrests six in prolific auto theft ring
- Michigan allocates $12 million to support community-based organizations in advancing environmental and climate justice
- Oakland County and SMART launch pilot program providing free transit for veterans and dependents
- Supreme Court sides with the Consumer Financial Protection Bureau
headlines National
- More lawyers—and clients—want to learn about sustainable development practices
- Top artificial intelligence insurance tips for lawyers
- Lawyer charged with illegally transmitting Michigan data after 2020 election
- Viral video shows former Rikers Island inmate as she learns she passed bar exam on first try
- How Sullivan & Cromwell is scrutinizing potential new hires after campus protests
- No separate hearing required when police seize cars loaned to drivers accused of drug crimes, SCOTUS rules