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After a disappointing July, August brought a comeback in pending sales, inching up 1.6 percent, according to the latest National Association of REALTORS® Pending Home Sales Index, based on contract signings.

Credit: National Association of REALTORS®

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“It is very encouraging that buyers are responding to exceptionally low interest rates,” says Lawrence Yun, NAR chief economist. “The notable sales slump in the West region over recent years appears to be over. Rising demand will reaccelerate home price appreciation in the absence of more supply.”

For future home sales, NAR is anticipating an 0.6 percent rise in 2019, and a 3.4 percent rise in 2020, as well as construction to increase 2 percent in 2019 and 10.6 percent in 2020.

“With interest rates expected to remain low, home sales are forecasted to rise in the coming months and into 2020,” Yun says. “Unfortunately, so far in 2019, new-home construction is down 2.0 percent. The hope is that housing starts quickly move into higher gear to meet the higher demand. Moreover, broader economic growth will strengthen from increased housing activity.”

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

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