Pending home sales moved higher last month, climbing to the highest level in 21 months. But some regions of the country saw declines.
As of March, the Pending Home Sales Index, which is an indicator of upcoming existing home sales, was 108.6.
Pending home sales now stand at the highest level since June 2013, when the index, which is based on contract signings, was 109.4.
The index improved from the previous month, when it was a revised 107.4. February’s number was originally reported at 106.9.
A more spectacular gain has been made compared to a year earlier, a month when the index was a revised 97.7. The March 2014 index was originally reported at 97.4.
The National Association of Realtors, which reports the index, said it has increased on a year-over-year basis for seven consecutive months.
NAR Chief Economist Lawrence Yun noted in the report that last month’s improvement reflects the beginning of a strong spring buying season.
Yun highlighted the participation of more traditional buyers in the market.
“While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news,” he said. “It indicates this year’s activity is being driven by more long-term homeowners.”
But Yun cautioned that a lack of supply and accelerating prices could be a drag on upcoming home sales.
In the South, pending home sales jumped 4.0 percent from February, while they were up 1.7 percent in the West.
But the news was not so good in the Northeast, where activity slowed 1.5 percent, and even worse in the Midwest, with pending home sales dropping 2.5 percent in March.
