After two months of declines, pending home sales rose 2% from January to February, according to the National Association of REALTORS® (NAR). This metric, which tracks signed contracts on existing homes, typically precedes closings by 1-2 months and is a key indicator of housing market performance.
What’s the bottom line?
The rise in signed contracts comes from a historically low baseline, with much of the increase attributed to the South, where severe winter weather in January likely delayed transactions until February. This trend aligns with recent reports on new home sales and existing home closings, both of which displayed improvement following a sluggish January.