After retreating for three consecutive months, the pipeline of pending home sales moved higher last month. Out front of the bounce was the West.
The U.S. Pending Home Sales Index was calculated to be 110.2 during June 2017. The index is
a forward-looking indicator based on contract signings.
On a seasonally adjusted basis, that turned out to be 1.5 percent higher than in May 2017, when the index had moved lower three months in a row.
The data from the National Association of Realtors, which released last month’s index on Monday, indicate that pending home sales have inched up 0.5 percent since June 2016.
NAR Chief Economist Lawrence Yun explained in an accompanying announcement that low supply continues to restrain home sales.
“Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria,” Yun said.
But the economist highlighted how falling investor activity could be good for first-time homebuyers.
The month-over-month gain was biggest in the West: 2.9 percent. That put the West’s index at 101.5.
June’s index was 126.0 in the South, rising 2.1 percent from a month earlier. The Northeast’s index escalated 0.7 percent to 98.0.
Only the Midwest experienced a decline from May in its index: 0.5 percent to 104.0.
