For the second consecutive month, pending home has continued to soar. Contract signings continued to increase another 16.6% in June, pushing the index to 116.1. An index of 100 is equal to 2001’s contract signing activity. The year-over-year sales have also increased. In comparison to last June, contract signings rose by 6.3%.
Lawrence Yun, NAR’s chief economist explained, “It is quite surprising and remarkable that, in the midst of a global pandemic, contract activity for home purchases is higher compared to one year ago. Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy.” NAR is also projecting that existing-home sales are expected to drop by only 3% and new home sales are to rise 3% for all of 2020. This leaves us eager to see what comeback the market will continue to make over the following months.
Copyright ©2020 “Pending Home Sales Mount 16.6% Increase in June” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. July 8, 2020, https://www.nar.realtor/newsroom/pending-home-sales-mount-16-6-increase-in-june