Pending home sales dropped 1.2 percent in March, according to the National Association of Realtors. This marks five straight months of contract activity declines.
Compared to March 2021, transactions sank 8.2 percent.
On the monthly outlook, pending sales rose 4 percent in the Northeast while falling in all other regions. All four regions reported decreases in year-over-year contract activity.
“The falling contract signings are implying that multiple offers will soon dissipate and be replaced by much calmer and normalized market conditions,” said Lawrence Yun, NAR’s chief economist. “As it stands, the sudden large gains in mortgage rates have reduced the pool of eligible homebuyers, and that has consequently lowered buying activity.”
Pending sales in the West declined 0.2 percent in March, down 8.4 percent from a year prior.