U.S. pending home sales up 0.4 percent in March

CHICAGO, April 30 (Xinhua) -- U.S. pending home sales inched higher for the second consecutive month in March, but lack of choices and affordability once again held back sales, the U.S. National Association of Realtors (NAR) said on Monday.

The Pending Home Sales Index, an indicator based on contract signings, was up about 0.4 percent to 107.6 in March from 107.2 in February. Still, the index declined 3 percent on an annualized basis for the third straight month.

"Healthy economic conditions are creating considerable demand for purchasing a home, but not all buyers are able to sign contracts because of the lack of choices in inventory," said Lawrence Yun, NAR's chief economist.

"What continues to hold back sales is the fact that prospective buyers are increasingly having difficulty finding an affordable home to buy," he added.

In the Northeast, winter storms and cold weather in early spring also contributed to the decrease in contract signings. The fall reached 8.1 percent in the region on an annualized basis.

Yun forecast for existing-home sales in 2018 to be around 5.61 million, up from 5.51 million in 2017. The national median existing-home price is expected to increase around 4.4 percent. In 2017, existing sales increased 1.1 percent and prices rose 5.8 percent.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, and the sale is usually finalized within one or two months of signing. Enditem