Pending home sales rebounded by more than expected in the month of June, according to a report released by the National Association of Realtors on Monday.
NAR said its pending home sales index jumped by 1.5 percent to 110.2 in June after falling to 108.6 in May. Economists had expected pending home sales to climb by 1.0 percent.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
"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," said NAR chief economist Lawrence Yun.
He added, "Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago."
The rebound in pending home sales reflected strength in the West and South, where pending home sales surged up by 2.9 percent and 2.1 percent, respectively.
Pending home sales in the Northeast also rose by 0.7 percent, while pending sales in the Midwest dipped by 0.5 percent.
Yun expects existing-home sales to finish around 5.56 million in 2017, reflecting an increase of 2.6 percent from 2016.
The national median existing-home price this year is expected to increase around 5 percent. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.
by RTT Staff Writer
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