Pending home sales rise more than expected
(Larry Downing/Reuters)
Pending home sales rose 1.3% in July, according to the National Association of Realtors.
Compared to the prior year, sales fell 2.2%.
Economists had forecast that pending sales, which measure contract activity and are an indicator of future existing home sales, rose 0.7% month-on-month, according to Bloomberg.
Year-on-year, they forecast an increase by 2.2%.
"More home shoppers having success is good news for the housing market heading into the fall, but buyers still have few choices and little time before deciding to make an offer on a home available for sale," said Lawrence Yun, the NAR's chief economist, in the release.
He noted that according to realtors, there's huge demand for affordable single-family starter homes and townhomes, as homebuilders shift away from constructing larger, expensive houses.
The pending home sales index in the west rose to the highest level since June 2013. Sales were supported by strong job gains, Yun said. The labor market should continue to support sales if affordability improves and construction increases, he added.
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