July brought more positive news for the markets. According to the National Association of REALTORS® (NAR), pending home sales for the month marked three consecutive months of growth, with gains across all major regions in both month-over-month and year-over-year transactions.
NAR’s Pending Home Sales Index (PHSI) rose 5.9 percent to 122.1 in July, with YoY contract signings increasing 15.5 percent. According to NAR, an index rating of 100 is equal to the level of contract activity in 2001.
Here’s the regional breakdown:
+25.2% – Now 112.3 PHSI
+3.3% – Now 114.6 PHSI
+0.9% – Now 142.0 PHSI
+6.8% – Now 106.4 PHSI
What’s in store for the second half of the year? According to Lawrence Yun, NAR’s chief economist, existing-home sales are expected to increase to 5.8 million, bringing the full-year level of existing-home sales to 5.4 million—up 1.1 percent YoY. In 2021, Yun expects existing-home sales to reach 5.86 million, with the markets buoyed by a 4 percent economic growth rate and continued low interest rates with 30-year mortgages averaging 3.2 percent.
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market,” said Yun. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
“Anecdotally, REALTORS® are telling me there is no shortage of clients or home seekers, but that scarce inventory remains a problem,” added Yun. “If 20 percent more homes were on the market, we would have 20 percent more sales, because demand is that high.”
For more information, please visit www.nar.realtor.