An improved employment market in the West region helped push up national pending home sales during July to the highest level in three months.
Last month, the
seasonally adjusted Pending Home Sales Index was 111.3 — the highest it’s been since April 2016’s downwardly revised 115.0.
The index,
a forward-looking indicator based on contract signings, increased more than a percent from June 2016’s downwardly revised number.
It also increased over 1 percent compared to July 2015’s downwardly revised level.
The National Association of Realtors reported the statistics Wednesday.
“Amidst tight inventory conditions that have lingered the entire summer, contract activity last month was able to pick up at least modestly in a majority of areas,” NAR Chief Economist Lawrence Yun explained in the report. “More home shoppers having success is good news for the housing market heading into the fall, but buyers still have few choices and little time before deciding to make an offer on a home available for sale.”
Leading the month-over-month gain was the West, where the index jumped 7 percent to 108.7.
“The index in the West last month was the highest in over three years largely because of stronger labor market conditions,” Yun added. “If homebuilding increases in the region to tame price growth and alleviate the ongoing affordability concerns, the healthy rate of job gains should support more sales.”
A less than 1 percent gain was recorded for the South, with that index landing at 123.9, and the Northeast, where the index was 96.8.
Only the Midwest suffered a setback, down 3 percent to an index of 105.8.
