Real Estate April 27, 2024

Pending Home Sales And Home Prices Rise

The National Association of Realtors reported this week that pending home sales increased 3.4 percent in March and that existing home sales are expected to rise by 9 percent this year. The Northeast, South and West posted gains in transactions while the Midwest recorded a loss.

“March’s Pending Home Sales Index…marks the best performance in a year, but it still remains in a fairly narrow range over the last 12 months without a measurable breakout,” explained NAR Chief Economist Lawrence Yun. “Meaningful gains only will occur with declining mortgage rates and rising inventory.”

NAR expects the median home price nationally will increase by 1.8 percent this year to a record $396,800 and another 1.8 percent in 2025 to $403,800. “Home prices are expected to rise roughly in line with consumer price inflation and wage growth over the next two years,” Yun said. “Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales. Given the lingering housing shortage, home prices will march higher, albeit much more slowly than in the past.”