Realtors say more sign contracts in March
A sale-pending sign is perched outside a home this month in Wilmington, Mass. Realtors are reporting that more signed contracts to purchase houses in March, but the number is still way below what is needed to signal a rebound. (April 12, 2011) Credit: AP
WASHINGTON -- More Americans signed contracts to buy homes in March, but sales were uneven across the country and were not enough to signal a rebound in the housing market.
Sales agreements for homes rose 5.1 percent last month to a reading of 94.1, according to the National Association of Realtors' pending home sales index released Thursday.
Signings are more than 20 percent above June's index reading, the low point since the housing bust. Still, the index is below 100, which is considered a healthy level. The last time it reached that point was in April, the final month people could qualify for a federal home-buying tax credit of up to $8,000.
Contract signings are usually a good indicator of where the housing market is heading. That's because there's usually a one- to two-month lag between a sales contract and a completed deal.
The pace of sales varied from region to region. The index rose 10.3 in the South, 3.1 percent in the West and 3 percent in the Midwest. It fell 3.2 percent in the Northeast.
High unemployment and strict lending standards are preventing some people from buying homes. A rising number of foreclosures forcing down home prices, leaving would-be buyers concerned that the market has yet to reach bottom.
Economists say it will be years before the housing sector recovers. Sales of previously occupied homes fell last year to its lowest level in 13 years. Americans are on track to buy fewer new homes this year than in any year since the government began keeping data almost a half-century ago. Sales are now just half the pace of 1963 -- even though there are 120 million more people living in the United States today.
