Purchases of previously owned homes rose in March, as the housing market continues to accelerate this year, according to a report released Monday.
The National Association of Realtors said Monday that its seasonally adjusted index for pending home sales rose 1.5 percent to 105.7. That's the highest since April 2010, when a homebuyer's tax credit boosted sales. It's also above February's reading of 104.1.
While the momentum continues for a housing recovery, "contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply," said Lawrence Yun, the NAR chief economist.
"Little movement is expected in near-term sales closings, but they should edge up modestly as the year progresses," he said. "Job additions and rising household wealth will continue to support housing demand."
The Realtors group was cautious about the report, noting the level has hovered around 105 so far this year. "Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply," said Lawrence Yun, the association's top economist.
The inventory of previously owned homes listed for sale at the end of March increased 1.6% from February to 1.93 million, the Realtors group said last week. It was still the lowest tally for the month of March since 2000.
