August pending home sales increased 8% over July to a level of 119.5 on the Pending Home Sales Index, the National Association of Realtors reported.
Year-over-year, contract signings declined 8.3%. An index of 100 is equal to the level of contract activity in 2001.
“Rising inventory and moderating price conditions are bringing buyers back to the market,” stated Lawrence Yun, NAR’s chief economist. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.”
Regionally, month-over-month pending home sales increased 4.6% in the Northeast to a level of 96.2, 10.4% in the Midwest to 115.4, 8.6% in the South to 141.8 and 7.2% in the West to 107.0. Compared with August 2020, pending home sales declined in every region.
The full NAR report can be found here.
