Kevin Sears President | Official website
Pending home sales in the United States rose by 4.0% in August compared to the previous month, according to a report from the National Association of Realtors (NAR). The data also show a 3.8% increase in pending home sales over the same period last year.
The NAR Pending Home Sales Report provides information on homes that are under contract but not yet closed, offering insight into future home sales activity. The report indicated that pending sales increased month-over-month in the Midwest, South, and West regions, while there was a decline in the Northeast. Year-over-year figures showed gains across all regions.
According to NAR’s REALTORS Confidence Index survey for August, 19% of members expect an increase in buyer traffic over the next three months, up from 16% last month and unchanged from one year ago. Meanwhile, 19% anticipate an increase in seller traffic, which is down from 21% last month but up from 18% in August 2024.
NAR Chief Economist Lawrence Yun said, "Lower mortgage rates are enabling more home buyers to go under contract." He added, "In the Midwest, low mortgage rates combined with high levels of affordability are attracting more buyers compared to other regions."
Breaking down regional data for August:
- In the Northeast, pending home sales decreased by 1.1% month-over-month but increased by 2.6% year-over-year.
- The Midwest saw an 8.7% rise from July and a 6.7% increase compared to last year.
- The South experienced a monthly gain of 3.1%, with a yearly increase of 4.2%.
- In the West, pending sales grew by 5.0% since July and edged up by 0.2% year-over-year.
The Pending Home Sales Index (PHSI) is used as a forward-looking indicator based on signed contracts for existing homes. An index value of 100 corresponds to contract activity levels seen in 2001.
The time between signing a contract and closing varies due to factors such as financing challenges or inspection issues. On average, about two months pass between these stages for most transactions.
NAR is involved in various aspects of residential and commercial real estate and offers consumer guides on topics like buyer agreements and negotiating compensation at facts.realtor.
