The National Association of Realtors is reporting that pending home sales increased 1.6% in August, which they say was a welcome rebound after a prior month of declines. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) increased to 107.3 in August, up 1.6% from July. In addition, they reported that year-over-year contract signings were up 2.5%.
“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.”