NAR Shows Pending Home Gains

The National Association of Realtors (NAR) has shared a report showing that pending home sales were on the rise. Previous months had shown increases overall, yet there were some minor dips in select regions here and there. For August, all of the four major regions in the country have shown gains. 

The Pending Home Sales Index had increased by 1.6% in the month of August making contract signings up by 2.5% over that of last year at this time. “It is very encouraging that buyers are responding to exceptionally low interest rates,” said Lawrence Yun, NAR chief economist. “The notable sales slump in the West region over recent years appears to be over. Rising demand will reaccelerate home price appreciation in the absence of more supply.”

Breakdown by U.S. Region

For activity, the highest gain was experienced in the West. The Northeast showed a 1.4% gain while the Midwest shad a 0.6% increase. The South had an uptick of 1.4% while the West was the winner coming in at 3.1% which was up by 8% over 2018. 

“With interest rates expected to remain low, home sales are forecasted to rise in the coming months and into 2020,” said Yun. “Unfortunately, so far in 2019, new home construction is down 2.0%. The hope is that housing starts quickly move into higher gear to meet the higher demand. Moreover, broader economic growth will strengthen from increased housing activity.”

The National Association of Realtors has said they expect that home sales will continue to grow. They forecast that there will be a 0.6% increase for the balance of 2019 and another 3.4% for the year 2020. Housing starts are slated to increase this year by 2% with an additional 10.6% for next year.