Pending-home sales increase 2.8 percent in June
For the second consecutive month, pending-home sales continued to rise, moving up from 105.4 in May to 108.3 in June—a 2.8 percent increase. NAR chief economist, Lawrence Yun credits the market—predicting continued growth for the future. “Job growth is doing well; the stock market is near an all-time high and home values are consistently increasing. When you combine that with the incredibly low mortgage rates, it is not surprising to now see two straight months of increases,” he explains.
Yun anticipates the need for increased inventory to ensure homeownership is attainable for a wider range of buyers. “Homes are selling at a breakneck pace, in less than a month, on average, for existing homes and three months for newly constructed homes,” he said. “Furthermore, homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion. But the number of potential buyers exceeds the number of homes available. We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”
From a regional standpoint, all four major regions experienced growth—both from May and from last year. June’s pending-home sales increased 2.7 percent in the Northeast, 3.3 percent in the Midwest, 1.3 percent in the South and an impressive 5.4 percent in the West.