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U.S. Pending Home Sales Rebound to a Seven-Month High in August By Bloomberg


© Bloomberg.

(Bloomberg). — The August gauge of U.S. Pending Home Sales rebounded to a seven month high due to prospective buyers welcoming more appealing pricing and adding inventory.

The National Association of Realtors’ index of pending home sales increased 8.1% from a month earlier to 119.5, the first advance in three months, according to data released Wednesday. According to a Bloomberg survey, economists expected a 1.4% increase.

According to these figures, housing activity appears to be stabilizing after falling from record-breaking levels last year. The historically low rates of borrowing, the slower appreciation in prices and the availability of properties may help revive the softened demand.

“Rising inventory and moderating price conditions are bringing buyers back to the market,” Lawrence Yun, NAR’s chief economist, said in a statement. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.”

Read more: First-Time Buyers Get Crushed in Cutthroat U.S. Housing Market

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Contract signings increased across all four regions, led by gains in the Midwest and South that were the biggest since June 2020.

Unadjusted, contract signings decreased 6.3% in comparison to last year.

Another report from last week indicated that the sales of U.S.-owned homes fell 6.3% in August due to low home prices and decreasing inventories. The pending home sales is often seen as a leading indicator of existing home sales given homes typically go under contract a month or two before they’re sold.

©2021 Bloomberg L.P.

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