Overall contract signings improve after two months of declines
Buyers are returning to the market after a short hiatus thanks to the improvement in price and supply conditions, the National Association of Realtors reported.
Breaking two months of consecutive declines, pending home sales bounced back to 119.5% in August, up 8.1% month over month, but down 8.3% year over year.
“Rising inventory and moderating price conditions are bringing buyers back to the market,” said NAR chief economist Lawrence Yun. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.”
Read more: US house prices remain at record highs
Regional breakdown
Each of the four major regions posted month-over-month growth in contract activity. Pending home sales in the Northeast rose 4.6% to 96.2 in August (-15.8% YoY) and was up 10.4% to 115.4 in the Midwest (-5.9% YoY)
In the South, contract signings grew 8.6% to 141.8 (-6.3% YoY). The West saw a 7.2% increase to 107 (-9.2% YoY).
“The more moderately priced regions of the South and Midwest are experiencing stronger signing of contracts to buy, which is not surprising,” Yun continued. “This can be attributed to some employees who have the flexibility to work from anywhere, as they choose to reside in more affordable places.”
