In what can only be described as a positive sign for the real estate industry, pending home sales increased for a second consecutive month after seeing sluggish signs for the 17 months preceding. The National Association of Realtors (NAR) released their June pending home sales report which indicated according to their Pending Home Sales Index that contracts increased 2.8% to 108.3 in June and up from 105.4 in May 2019. The Pending Home Sales Index shows that all major regions saw an increase.
Lawrence Yun, chief economist for the National Association of Realtors has foreseen a positive trend in real estate. He states ” Job growth is doing well, the stock market is near an all-time high and home values are consistently increasing. When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases. He further states “Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes. Furthermore, homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion. But the number of potential buyers exceeds the number of homes available. We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”
As stated all major regions saw an increase in pending home sales. Of important for us here in the Northeast, we have seen an increase of 2.7% in the Northeast and is .9% higher than the same time last year. The highest growth was seen in the West where the Pending Home Sales Index increase 5.4%.
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