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After 17 months of poor showings, pending sales at the start of summer surged, according to the latest National Association of REALTORS® Pending Home Sales Index, based on contract signings. From May to June, the Index rose 2.8 percent, and year-over-year, sprang 1.6 percent.

Credit: National Association of REALTORS®

“Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing,” says Lawrence Yun, chief economist at NAR. “When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases. Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes. Furthermore, homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion.

“[However,] the number of potential buyers exceeds the number of homes available,” Yun says. “We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”

For more information, please visit www.nar.realtor.

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