Midwestern Surge Powers Pending Home Sales

A surge in the Midwest fed a very promising and stronger-than-expected 3.5 percent rise in pending home sales for February. Pending sales in the Midwest rose 11.4 percent with monthly sales also up in the South and West. The jump in the Midwest mirrors a February jump in the West on the new home side, in what are perhaps initial signs of isolated life in what has been a dormant housing sector of late. Today's report points to a badly needed bounce ahead for final sales of existing homes which, in previously released data for February, plunged 7.1 percent.

Recent History Of This Indicator:
Existing home sales have been very soft this year, as correctly indicated in advance by weak readings for pending home sales. This report for February is expected to rise 1.5 percent boosted by an easy comparison with January's unexpected 2.5 percent drop. Home-price appreciation has been no better than moderate and has not been enough to attract supply in the market which has remained very thin in what is another factor keeping sales down.