Investing.com - Contracts to buy previously owned homes rose in March, according to data released on Monday by the National Association of Realtors (NAR).
NAR said its pending home sales index, which measures signed contracts for homes where transactions have not yet closed, rose 0.4% to a reading of 107.6 after increasing by 2.8% in the previous month.
Economists had forecast pending home sales rising 0.6% last month.
Despite the month-on-month increase, the index registered a 3.0% decline on an annualized basis, its third straight decrease.
The NAR highlighted that “unrelenting inventory constraints kept activity below year ago levels”.
“Healthy economic conditions are creating considerable demand for purchasing a home, but not all buyers are able to sign contracts because of the lack of choices in inventory,” NAR chief economist Larry Yun explained in the report.
This expert noted that steady price growth and the swift pace listings are coming off the market were proof that more supply is needed to fully satisfy demand.
“What continues to hold back sales is the fact that prospective buyers are increasingly having difficulty finding an affordable home to buy,” Yun concluded.