Home sales rise in February
By: Reuters, CNBC.com
Pending sales of previously owned U.S. homes unexpectedly rose in February, a trade group said Monday, pointing to a modest pick-up in home sales.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in February, increased 2.1 percent to 90.8. Economists had expected the index, which leads existing home sales by a month or two, to fall 1.0 percent after a previously reported 2.8 percent decline.
“We may not see notable gains in existing-home sales in the near term, but they’re expected to rise 5 to 10 percent this year with the economic recovery, job creation and excellent affordability conditions providing confidence to buyers who have been on the sidelines,” said NAR chief economist Lawrence Yun. Compared to February last year, the index was down 8.2 percent.
The data was a positive sign for a market that has been unable to recover even as the broader economy has shown improvement. It comes after dismal data last week that showed sales of both new and previously owned homes slumped in February.
“The fact that pending home sales rose bodes well for existing-home sales in the months ahead,” said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut. “Overall, the data continues to indicate it’s probably going to be a while before the housing market gets back on its feet.” Markets were little changed by the data, with U.S. stocks holding onto gains.
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