In the market to buy a new or existing home? It turns out that thousands of American’s have already made that decision and have signed on the dotted line. According to recent numbers released by the National Association of Realtors, pending home sales are at a two year high.
The group’s Pending Home Sales Index is based on contracts signed by potential homeowners in July. The index increased in July by 2.4 percent to 101.7. If that number is correct, it is the best month for pending home sales since August 2010.
That number would also mark the highest total since the home buyer tax credit program ended.
The expected signed contracts become sales typically 30 to 60 days after completion.
An increase in the Pending Home Sales Index is a welcomed change from June when that number fell by 1.4 percent.
NAR chief economist Lawrence Yun tells NBC News:
“All regions saw monthly increases in home-buying activity except for the West, which is now experiencing an acute inventory shortage.”
The largest increase was witnessed in the South where contracts rose by 5.2 percent. In comparison, the Midwest saw similar contracts increased by just 3.4 percent while Northeast US sales jumped by 0.5 percent and sales in the West increased by 1.7 percent.
According to CNBC pending home sales beat analysts expectations for the month of July. The news agency claims that investors looking to cash in on single family rental properties have helped push the housing market towards higher pending sales numbers over the short term.
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