WASHINGTON–During July pending home sales in July reached their second highest reading in a decade.
According to the National Association of Realtors, pending home sales were up 1.3% in July, after a downward revision in June to show a 0.8% drop instead of a 0.2% gain. It’s 1.4% above year-ago levels and the second-strongest reading since April, according to the NAR.
The NAR’s Pending Home Sales Index found the western U.S. hit its highest level in more than three years.
The NAR defines a sale as pending when the contract has been signed but the transaction has not closed. The pending-home sales index typically represents about 20% of the transactions for existing-home sales, and is a leading indicator for that series.
The NAR is forecasting that existing home sales will reach 5.38 million this year, up 2.8% and the highest level since 2006.
It further forecasts median existing-home price growth of 4%, down from 6.8% in 2015. Median home prices are impacted not just by market changes but by the mix of homes being sold.