NAR has reported second monthly gain, led by the West
US pending home sales increased in June, the second consecutive monthly gain.
The National Association of Realtors says that its Pending Home Sales Index (PHSI) gained 2.8% from May to 108.3; and was up 1.7% year-over-year, the first annual gain in more than a year and a half.
"Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing,” said NAR chief economist Lawrence Yun. “When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases.”
He added that this shows buyers’ enthusiasm for the market but also that homebuilders need to increase supply.
"Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes," said Yun. "Furthermore, homeowners' equity in real estate has doubled over the past six years to now nearly $16 trillion. But the number of potential buyers exceeds the number of homes available.”
Yun is urging builders to substantially increase supply, especially for entry-level homes.
West leads gains
The PHSI increases were seen across the four major regions but it was the West that recorded the strongest gain:
- Northeast – up 2.7% to 94.5, up 0.9% from a year ago;
- Midwest - up 3.3% to 103.6, up 1.7% from a year ago;
- South - up 1.3% to 125.7, up 1.4% from a year ago;
- West - up 5.4% to 96.8, up 2.5% from a year ago.
