July Marks second consecutive monthly increase
Washington – Pending home sales improved in July, up 0.9% from June, rising for the second consecutive month, according to the National Association of Realtors.
Key Highlights
- Month over month, contract signings increased in the South and West but decreased in the Northeast and Midwest.
- Pending home sales fell in all four U.S. regions compared to one year ago.
The Northeast and Midwest posted monthly losses, while sales in the South and West grew. All four U.S. regions saw year-over-year declines in transactions.
The Pending Home Sales Index (PHSI)*, a forward-looking indicator of home sales based on contract signings, rose 0.9% to 77.6 in July. Year over year, pending transactions fell by 14.0%. An index of 100 is equal to the level of contract activity in 2001.
“The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple home buying offers,” said NAR Chief Economist Lawrence Yun. “Jobs are being added and, thereby, enlarging the pool of prospective homebuyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many.”
Pending home sales in the South was up 2% to 95.3 in July, declining 10.9% from the prior year.
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