Pending Sales in February 2024 Increase from January

NAR released a summary of pending home sales data showing that February's pending home sales rose 1.6% from last month and decreased 7% from a year ago.

Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by one to two months.

All four regions showed declines from a year ago. The Northeast region had the biggest decrease of 9.0%, followed by the South with a dip of 8.5%. The West fell 7.9%, followed by the Midwest with a reduction in sales of 2.5%.

Compared to last month, two regions showed increases in contract signings. The Midwest had the biggest increase, 10.6%, followed by the South, which increased by 1.1%. The West region had the biggest decline, 6.5%, followed by the Northeast, which fell 0.3%.

The U.S. pending home sales index level for the month of January was 75.6. January’s pending sales figures were revised to 74.4.

February’s contract signings bring the pending index below the 100-level mark for the 23rd consecutive month.

The 100 level is based on a 2001 benchmark and is consistent with existing-home sales above the 5 million mark.