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Tight inventory took a toll: Feb. is the 4th consecutive month of decreases for NAR\u2019s pending sales index, which is down 5.4% year-over-year.<\/span><\/span><\/p>\n<\/div>\n

WASHINGTON \u2013 Pending home sales slipped in February, marking four consecutive months of transaction decreases, according to the National Association of Realtors\u00ae (NAR). Three of the four major U.S. regions saw contract signings fall month-over-month, with the Northeast being the only area that reported an increase. All four regions registered a decline in year-over-year contract activity.<\/span><\/span><\/span><\/p>\n

The <\/span>Pending Home Sales Index<\/span><\/a> (PHSI), a forward-looking indicator of home sales based on contract signings, waned 4.1% to 104.9 in February. Year-over-year, transactions dropped 5.4%. An index of 100 is equal to the level of contract activity in 2001.<\/span><\/span><\/span><\/p>\n

\u201cPending transactions diminished in February mainly due to the low number of homes for sale,\u201d said Lawrence Yun, NAR’s chief economist. \u201cBuyer demand is still intense, but it\u2019s as simple as \u2018one cannot buy what is not for sale.\u2019\u201d<\/span><\/span><\/span><\/p>\n

Along with climbing home prices, Yun added that now buyers must grapple with rising mortgage rates and noted that shoppers will likely want to lock in before rates increase further.<\/span><\/span><\/span><\/p>\n

\u201cIt is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead,\u201d he said. \u201cConsequently, home sellers cannot simply bump up prices in the upcoming months but need to assess the changing market conditions to attract buyers.\u201d<\/span><\/span><\/span><\/p>\n

As of February 2022, higher mortgage rates and sustained price appreciation has led to a year-over-year increase of 28% in mortgage payments.<\/span><\/span><\/span><\/p>\n

\u201cThe surge in home prices combined with rising mortgage rates can easily translate to another $200 to $300 in mortgage payments per month, which is a major strain for many families already on tight budgets,\u201d Yun said.<\/span><\/span><\/span><\/p>\n

Yun forecasts mortgage rates to be about 4.5% to 5% for the remainder of the year and expects about a 7% reduction in home sales in 2022 compared to 2021.<\/span><\/span><\/span><\/p>\n

\u201cHome prices themselves are still on solid ground,\u201d he added. \u201cThey may rise around 5% by year’s end and we should see much softer gains in the second half of the year.\u201d<\/span><\/span><\/span><\/p>\n

Realtor.com\u00ae\u2019s Hottest Housing Markets data<\/span><\/a> in February showed that of the largest 40 metros, the most improved markets over the past year were Orlando-Kissimmee-Sanford, Fla<\/strong>.; Miami-Ft. Lauderdale, Fla.<\/strong>; Nashville-Davidson, Tenn.; Indianapolis, Ind.; and San Diego-Carlsbad, Calif.<\/span><\/span><\/span><\/p>\n

February Pending Home Sales Regional Breakdown<\/span><\/strong><\/span><\/span><\/p>\n

Month-over-month, the Northeast PHSI rose 1.9% to 85.0 in February, a 9.2% drop from a year ago. In the Midwest, the index decreased 6.0% to 99.7 last month, down 5.2% from February 2021.<\/span><\/span><\/span><\/p>\n

Pending home sales transactions in the South declined 4.4% to an index of 127.2 in February, down 4.3% from February 2021. The index in the West slid 5.4% in February to 90.0, down 5.3% from a year prior.<\/span><\/span><\/span><\/p>\n

\u00a9 2022 Florida Realtors\u00ae<\/span><\/span><\/span><\/p>\n<\/div><\/div>\n

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\nAuthor: marlam<\/p>\n","protected":false},"excerpt":{"rendered":"