Following two months on the low, pending home sales rebounded in August, according to just-released numbers from the National Association of Realtors.
According to NAR, contract signing were up 8.1 percent compared to July 2021, with all regions of the U.S. seeing growth. Year-over-year, signings dropped 8.3 percent.
Month-over-month, the West saw pending home sales increase by 7.2 percent in August, however still down 9.2 percent compared to August 2020. The Northeast saw pending home sales increase by 4.6 percent in August—a 15.8 percent drop from a year ago.
In the Midwest, signings were up 10.4 percent, but down 5.9 percent from August 2020. Pending home sales transactions in the South increased 8.6 percent In August 2021, down 6.3 percent from August 2020.
“Rising inventory and moderating price conditions are bringing buyers back to the market,” said Lawrence Yun, NAR’s chief economist. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.
“The more moderately priced regions of the South and Midwest are experiencing stronger signing of contracts to buy, which is not surprising,” Yun continued. “This can be attributed to some employees who have the flexibility to work from anywhere, as they choose to reside in more affordable places.”