Supply Will Soon Meet High Housing Demand
NAR chief economist Lawrence Yun voiced optimism in his statements accompanying the pending home sales report, stating that supply will soon come closer to meeting high housing demand.
The trade group reported that pending home sales rose 1.9 % index points to 111.3 in March, after two consecutive months of decline.
An index based on 2001 figures shows historic shifts in population. In the South, the pending home sales index is 137.2. But in the Northeast, Midwest, and West the figure is a few points less than 100.
According to Yun, more inventory will show up as new home construction intensifies in the upcoming months as well as from a steady wind-down of the mortgage forbearance program.
New residential construction building permits in the U.S. incrementally climbed to 1.76 million in March, according to the U.S. Census Bureau, continuing the recent increase in housing starts.