When an offer to buy a home is accepted and the contract to buy has been signed, that home’s sale is considered pending until it closes weeks later. During the ensuing weeks, there are several steps that need to be completed for the home’s sale to become final. But since most pending sales end up as closed sales, the National Association of Realtors tracks them each month, as they’re considered a good indicator of future home sales numbers. According to the NAR’s most recent Pending Home Sales Index, contract signings were up almost 2 percent in February, with month-over-month gains seen in all regions of the country. Dr. Lawrence Yun, NAR’s chief economist, says the gains were likely driven by improved affordability conditions. “The slight gain in pending contracts appears to be driven by improved affordability conditions,” Yun said. “However, those conditions could reverse if higher oil prices lead to an uptick in mortgage rates.” Among the top 50 metros, San Diego, Jacksonville, San Jose, Denver, and Miami saw the biggest annual improvements in pending sales, with each posting double-digit gains in February. (source)
