Pending Home Sales Leap 8.2 Percent

Buyers are back in action. Far exceeding expectations, purchases of previously occupied homes rose 8.2% from January to February – the largest leap since October 2001.

Because pending home sales are a forward-looking indicator, the recent increase suggests that actual sales will soon improve, as well. According to Lawrence Yun, NAR’s chief economist, the positive report “may signal the early stages of a second surge of home sales this spring.”

Key factors that contribute to the rise in sales contracts include the soon-to-expire home buyer tax credit, a recent boost in consumer confidence, and labor market improvements.

Richard Dye, senior economist at PNC Financial Services, explains that housing market performance is closely tied to employment rates. “Right now, everything points to the labor market. What we need to see is continued strength in private sector job creation.”

Fortunately, Dallas’ labor market has recently shown hopeful signs. As the Dallas Business Journal reports, “The unemployment rate in Dallas-Fort Worth-Arlington fell to 8.4 percent in February, down from 8.7 percent a month earlier.” Though national employment numbers have been less promising, Dallas is well positioned for continued gains and growth.

For more details, visit msnbc.com.