Pending Home Sales Still Look Rocky

Data from the National Association of Realtors showed that a seasonally adjusted index for tracking the pending home sales fell by 0.5% to 96.5.  Still, this is 9.2 higher than a year ago.  Dow Jones was calling for a 1% gain rather than a 0.5% drop.

The association’s top economist is remaining upbeat despite the drop seen in this number.  The team noted that the spring home buying season looks bright and noted an elevated level of contract offers so far in 2012.  The report even noted that existing home sales might see the best reading in five years if current activity remains. These are contracts signed but where the transaction hasn’t closed.

Pending sales were down in three out of the four U.S. regions in February versus the prior month: -3.0% in the South, -2.6% in the West, and -0.6% in the Northeast.  The Midwest showed an impressive 6.5% gain.

JON C. OGG