(ABM FN-Dow Jones) Pending home sales in the United States rose slightly faster than expected in February. This emerged on Thursday from figures from the real estate agency NAR.
The index rose 1.6 percent to 75.6, after a decline of about 5 percent in January.
Economists expected an increase of 1.2 percent for February.
On an annual basis, pending home sales fell 7.0 percent in February.
“While modest sales growth may not be exciting, it shows slow and steady progress from the lows of late last year,” said NAR economist Lawrence Yun. “Continued job growth is clearly driving demand, along with more inventory.”
Yun did warn that “home prices rising faster than income growth” pose additional challenges for first-time buyers.
The index for upcoming home sales is based on signed contracts for the purchase of existing single-family homes, apartments and residential groups, but where the transaction has not yet been completed. After signing the contract, it usually takes one to one and a half months before the sale is actually completed.
Source: ABM Financial News
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