Residential Real Estate News
U.S. Pending Home Sales Rise 5 Percent in June, First Time in 3 Months
Based on new data by the National Association of Realtors, pending U.S. home sales in June 2024 ascended 4.8%. All four U.S. regions posted monthly gains in transactions. Year-over-year, the Northeast, Midwest and South registered declines, while the West increased.
The Pending Home Sales Index (PHSI) - a forward-looking indicator of home sales based on contract signings - grew to 74.3 in June. Year over year, pending transactions were down 2.6%. An index of 100 is equal to the level of contract activity in 2001.
"The rise in housing inventory is beginning to lead to more contract signings," said NAR Chief Economist Lawrence Yun. "Multiple offers are less intense, and buyers are in a more favorable position."
Pending Home Sales Regional Breakdown
The Northeast PHSI ascended 3.0% from last month to 65.5, a decline of 0.3% from June 2023. The Midwest index rose 4.7% to 73.7 in June, down 4.2% from one year ago.
The South PHSI increased 6.3% to 89.3 in June, dropping 3.9% from the prior year. The West index climbed 3.4% in June to 58.4, up 1.0% from June 2023.
"Even more inventory is expected to come onto the housing market in the upcoming months ahead of the normal, seasonal declines in the winter," added Yun. "The Northeast's small gain in contract signings is due to the ongoing housing shortage situation in that region, leading to stronger home price gains. It is a good time to list."
