Pending sales of us property dip

Photo: Fifth World Art

Pending transactions dipped 0.8 percent in February 2013 from the previous month, according to the NAR figures, taking the index 10.5 per cent below February 2013 to the weakest reading since October 2011.

There were some modest increases in the Midwest and West. but these gains were offset by declines in the Northeast and South. Overall, everywhere saw declines year-on-year. In the Midwest the index rose 2.8 percent in February, but is 8.5 percent lower than February 2013. The index in the West increased 2.3 percent in February, but is 16.5 percent below February 2013.

Lawrence Yun, NAR chief economist, though, forecast positive times ahead, saying that the recent slowdown in home sales may be behind us, while home prices continue to rise. “Contract signings for the past three months have been little changed, implying the market appears to be stabilizing,” he said. “Moreover, buyer traffic information from our monthly Realtor® survey shows a modest turnaround, and some weather delayed transactions should close in the spring.”

Sales of existing homes are now forecast at 5.0 million this year, just below the nearly 5.1 million in 2013. Housing starts are projected to rise almost 19 percent in 2014, and reach about 1.1 million, closer to the underlying demand of 1.5 million.

The gain in new home construction will reduce some of the pressure on home prices, predicts the NAR, with the national median existing home price expected to rise in the range of 5.5 to 6 percent this year, compared with an 11.5 percent jump in 2013.