Last week I reported here and again here on the dismal sales of new single family homes. The market for new homes continues to struggle as the bulk of residential real estate transactions are sales of distressed, previously owned homes.
So we should be seeing a considerable uptick in the sales of previously owned homes, right?
Kind of, I guess.
Today the National Association of Realtors released February data showing the index of pending sales of existing homes increased 2.1 percent in February. I suppose any gains are positive at this point, but that follows a 2.8 percent drop for the index in January.
The regional data varied greatly, and the Western region, that includes Colorado, led the country with a 7 percent gain.
“Month to month movements can be instructive, but in this uneven recovery it’s important to look at the longer term performance,” said NAR Chief Economist Lawrence Yun. “Pending home sales have trended up very nicely since bottoming out last June, even with periodic monthly declines. Contract activity is now 20 percent above the low point immediately following expiration of the home buyer tax credit.”
See the full NAR breakdown here.