Number of Contracts to Buy Homes at Highest Point Since July

By: The Associated Press March 28, 2016 Updated: March 28, 2016 at 9:17 am 

Number of Contracts to Buy Homes at Highest Point Since July

Linton Global Real Estate Investments

Linton Global Real Estate Investments

More Americans signed contracts to buy homes in February, with purchases surging ahead of the traditional spring buying season.

The National Association of Realtors said that its seasonally adjusted pending home sales index rose 3.5 percent to 109.1, rebounding from a 3 percent decline in January. The index has reached its highest level since July 2015.

The increase in signed contracts occurred despite a shortage of homes on the market. The gain suggests a strong start to the spring home buying season, after some recent reports have hinted at a possible slowdown as rising prices have hurt affordability.

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Pending sales contracts are a barometer of future purchases. A sale is typically completed a month or two after a contract is signed.

The recent pending sales report indicates that demand remains solid even though home prices are rising and buyers have a limited number of listings from which to choose.

Number of Contracts to Buy Homes at Highest Point Since July