Consistency reportedly is a running theme. Pending home sales in July reflected the third consecutive month of upward contract activity, according to the National Association of Realtors. Each of the four major regions saw gains in both month-over-month and year-over-year pending home sales transactions.
There was an escalation of 5.9% to 122.1 in July in the Pending Home Sales Index which, of course, is a forward looking indicator of homes sales based on contract signings. Additionally, year-over-year contract signings spiked 15.5%. An index of 100 is equal to the level of contract activity in 2001.
Broken down regionally, July pending home sales looked like this: All four regional indices recorded increases in contract activity on a month-over-month basis during the month, during which the Northeast PHSI swelled 25.2% to 112.3. From a year ago, a leap of 20.6%. Meantime, the Index parachuted 3.3% to 114.6 last month in the Midwest; up 15.4% from last July.
In the South, pending home sales leapfrogged 0.9% to an index of 142.0 in July—rising 14.9% from last July. In the West, the index burgeoned 6.8% in July to 106.4. That’s a climb of 13.2% from a year ago.
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market,” said Lawrence Yun, NAR’s chief economist. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
Prompted by lockdown measures stemming from COVID-19, prospective buyers were unable to participate in the spring buying season. As a result of pent-up demand, the market is enjoying hearty activity, with almost all states at least partially reopened. In the immediate future—in the suburbs, particularly--there are no signs that contract activity will dissipate, said Yun.
In the second half, existing-home sales will leap to 5.8 million, Yun predicted. Abetted by an economy that he anticipates will grow by 4% and a low-interest-rate environment, with the 30-year mortgage rate average of 3.2%, he believes existing-home sales will hit 5.86 million in 2021.
Newly pending sales were up again, with home properties rapidly changing hands, according to Zillow’s Weekly Market Report, which included the housing market data ending June 26 .
Meantime, there was a steady climb in the list prices for homes nationwide. Specifically, the Zillow report revealed that the median list price in the United States experiences an uptick of 0.7% from just one week prior, raising the average median price to $335,160—a price tag that is 3.2% greater than the median home price in America seen just one year ago.