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Signed contracts to buy existing homes increased 8.1% from July to August, reversing two straight months of declines, per the National Association of Realtors.
Analysts were expecting a 1% monthly rise. Signings were still down 8.3% compared with August 2020. These pending home sales are a future indicator of signed contracts in one to two months.
“Rising inventory and moderating price conditions are bringing buyers back to the market,” said Lawrence Yun, NAR’s chief economist. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.”
Home prices in July were up nearly 20% nationally year over a year, according to the latest S&P Case-Shiller home price index, but that is a three-month average going back to May. The increase in supply has lowered the number of bidding wars, according to real estate agents.
Sales rose the most in the least-expensive regions, namely the Midwest and South, reflecting how the shift to remote work in some industries gave buyers an incentive to relocate.
