A leading indicator of existing home sales rose 2.1% in February after falling for two consecutive months, but economists at the National Association of Realtors aren't optimistic about a surge in sales this spring.
In fact, NAR chief economist Lawrence Yun now sees the pace of home sales decelerating a bit.
NAR economists are forecasting a 6.9% rise in sales in the first quarter to a 5.08 million seasonally adjusted annualized rate. For 2Q they predict a smaller rise, 2.9%, to a 5.22 million rate.
"We may not see notable gains in existing-home sales in the near term, but they're expected to rise 5 to 10 percent this year with the economic recovery, job creation and excellent affordability conditions providing confidence to buyers who’ve been on the sidelines," Yun said.
NAR's pending sales index rose to 90.8 in February from 88.9 in January. The index reflects signed contracts on sales that are slated to close within two months.
The pending sale index has trended upward since hitting bottom last June (a reading of 75.9), a time when consumers were rethinking the market after the expiration of a federal home buyer tax credit.
The index has risen nearly 20% since June but it is still down 8.2% from February 2010.
