The recent downturn in the economy affected many sectors of the business world. The real estate market was no exception. After a stagnant market, real estate professionals were pleased to see pending Home sales increase in March. This came after a nine month lull where the market saw no gains.

According the Nationals Association of Realtors, the Pending Homes Sales Index rose 3.4%. This index is the leading indicator for national pending sales. A pending sale occurs when the contract has been signed, but the deal has not yet moved to closing. Most often the sale is closed within a month or two of the contract being signed. The Pending Homes Sales Index is based upon a large national sample, which usually represents approximately 20% of all existing home sales.

This 3.4% gain is still approximately 7.9% below where pending sales where in March of 2013. Pending sales being under where they were a year ago was observed all across the country. Sales were down 10.1% in the Midwest and 5.3% in the South compared to a year ago. The dismal winter was concerned to be part of the reason for the gain in pending sales. More people were starting to get out and more homes were beginning to go on the market. Sales activity is expected to continue to rise as more inventory comes onto the market and financial confidence continues to improve.

Home sales are expected to exceed 4.9 million this year, down from 5.1 million in 2013, and limited inventory is expected to cause home values to rise between 6 and 7%. Analysts predict that now is a great time to place a house for sale.

Seeing the pending home sales increase in March gives many people in the real estate industry confidence that the rest of the spring and summer market will follow.