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Pending home sales beat expectations rising 2.4 per cent in July. This is the highest level in over two years.On a yearly basis they were up 12.4 per cent.
Pending home sales in the south saw the biggest rebound rising 5.2 per cent in July, and up 15.6 per cent from a year ago.
“While the month-to-month movement has been uneven, more importantly we now have 15 consecutive months of year-over-year gains in contract activity,” said Lawrence Yun, NAR’s chief economist in a press release.
Pending home sales are considered to be a good leading indicator of existing home sales.
This chart from NAR shows the recovery in pending home sales:
Expectations: Economists polled by Bloomberg expect the National Association of Realtors’ pending home sales index is expected to rise 1 per cent month-over-month (mum) in July.
But estimates range from as much a 1.5 per cent mum decline, to a 3.5 per cent mum gain in the index.
With home prices turning positive on a year-over-year basis, analysts will be watching this number to strengthen their argument that the housing market has turned the corner.