February saw a minor drop in pending home sales. In this video spotlight, National Association of Realtors Chief Economist Lawrence Yun discusses how to make sense of the decline.
“In January, pending contracts were up close to 5 percent, so this month’s 1 percent drop is not a significant concern,” Yun said. “As a whole, these numbers indicate that a cyclical low in sales is in the past but activity is not matching the frenzied pace of last spring.”
According to Yun, sales in the West are below 2018's activity depite recent growth.
“There is a lack of inventory in the West and prices have risen too fast," Yun stated. "Job creation in the West is solid, but there is still a desperate need for more home construction.”
Watch the video here.