P
ending home sales surged 6.1% in March, the largest month-to-month increase since December 2023, offering a glimmer of hope for the market. This uptick could signal a reversal of the slowdown many markets have experienced this spring.

    According to the National Association of REALTORS®, contract signings jumped in March, driven by ongoing job growth and lower interest rates. Lawrence Yun, NAR's chief economist, attributes the rise in pending home sales to a buildup of potential buyers, fueled by steady employment gains. He also notes that mortgage rates dropped by 20-30 basis points in March, with the average rate falling to 6.65%.

    The spring home buying season typically brings an influx of buyers and sellers, and Yun believes this year's market should see a boost consistent with previous years' patterns. Signed contracts surged 34% in March compared to February based on non-seasonally adjusted raw data.

    Higher inventory levels may also be contributing to the increase in pending home sales. The inventory of homes for-sale rose by 8.1% in March, up almost 20% from a year ago. This is indicative of a more dynamic housing market environment, according to Yun.

    Regional trends show that contract signings increased substantially in the South, up about 10% from February. The Midwest and West also saw increases, while the Northeast experienced a decline. The South's job growth has driven up housing demand, whereas the Northeast's stagnant job market and low inventory have hindered sales.

    Here's an overview of how contract signings fared across the country in March:

    * Northeast: Contract signings fell 0.5% from February and are down 3% from a year ago.

    * Midwest: Pending home sales rose about 5%, up 1.4% from the previous year.

    * South: Contract signings increased about 10%, down 0.4% from a year ago.

    * West: Signings increased about 5% compared to the prior month but were still down 2% from a year earlier.