Pending home sales rose 1.8% month over month in February, the National Association of REALTORS® said, citing its Pending Home Sales Report. Sales were down 0.8% year over year. 

Regionally, pending sales rose in the Midwest, South and West, and declined in the Northeast on a month-over-month basis. Year over year, however, pending home sales rose in the South and West but declined in the Northeast and Midwest.  

“The slight gain in pending contracts appears to be driven by improved affordability conditions. However, those conditions could reverse if higher oil prices lead to an uptick in mortgage rates,” NAR Chief Economist Lawrence Yun said. “The Midwest — the most affordable region of the country — was the strongest performer in February. But the Northeast was held back by a combination of higher home prices and a shortage of supply.” 

At the local level, several markets saw significant year-over-year gains in pending home sales. Among the 50 largest metro areas, these were the top 10:  

1. San Diego – Chula Vista – Carlsbad, California (+13.5%)
2. Jacksonville, Florida (+12.1%) 
3. San Jose – Sunnyvale – Santa Clara, California (+10.6%)
4. Denver – Aurora – Centennial, Colorado (+10.5%)
5. Miami – Fort Lauderdale – West Palm Beach, Florida (+10.0%)
6. Phoenix – Mesa – Chandler, Arizona (+9.8%)
7. Sacramento – Roseville – Folsom, California (+9.3%)
8. Kansas City, Misouri (+8.7%)
9. Austin – Round Rock – San Marcos, Texas (+8.1%)
10. Oklahoma City, Oklahoma (+8.7%) 

“February’s increase in pending sales suggests the housing market is shaking off its winter slowdown, just as the spring buying season gets underway,” First American Senior Economist Sam Williamson said. “While recent mortgage-rate volatility may weigh on buyer sentiment at the margin, the market is entering spring on firmer footing than it was a year ago, with stronger buying power, persistent pent-up demand and gradually improving inventory continuing to support buyer interest. If those trends hold, they could provide a more supportive backdrop for stronger sales activity in the months ahead.”