The National
Association of Realtors (NAR) reported on Thursday its seasonally adjusted
pending home sales index (PHSI) rose by 0.6 per cent m-o-m to 70.6 in August, following an unrevised 5.5 per cent m-o-m
tumble in July.
Economists had expected
pending home sales to increase 0.3 per cent m-o-m in August.
On a y-o-y
basis, the index dropped 3.0 per cent after an unrevised 8.5 per cent plunge in July. This marked the 5th consecutive y-o-y decline in pending home sales.
According to
the report, pending home sales
operations grew in the West (+3.2 per cent m-o-m), Midwest (+3.2 per cent
m-o-m) and South (+0.1 per cent m-o-m) but fell Northeast (-4.6 per cent
m-o-m). Compared to August 2023, the West (+2.7 per cent) posted an advance in pending
home sales, but the South (-5.3 per cent), Midwest (-3.6 per cent) and Northeast
(-2.2 per cent) registered declines.
Commenting on the latest report, Lawrence Yun, NAR’s chief economist,
noted that August’s slight upward turn reflects a modest improvement in housing
affordability, primarily because mortgage rates decreased to 6.5 per cent. ‘However,
contract signings remain near cyclical lows even as home prices keep marching
to new record highs," he added.