More Americans signed contracts to buy homes in August
Contract signings are a barometer of finalized purchases over the next two months, so this month’s numbers point to continued strong sales in October.
SILVER SPRING, Md. (AP) — More Americans signed contracts to buy homes in August, suggesting the hot US housing market will continue to churn well into fall.
The National Association of Realtors said Wednesday that its index of pending sales rose 8.8 percent to a record high of 132.8. An index of 100 represents the level of contract activity in 2001. It had sunk to a low of 69 in April, when buyers and sellers were sidelined as the coronavirus swept the country.
Contract signings are a barometer of finalized purchases over the next two months, so this month’s numbers point to continued strong sales into October.
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The housing market has been one of the highlights of the US economy, which is still trying to get back its pre-virus momentum. Contract signings are now 24.2 percent ahead of where they were last year, after falling behind last year’s pace earlier in the year because of the pandemic.
The positive pending home sales numbers follow a pair of indicators showing continued strength in the housing market. The National Association of Realtors said last week that sales of existing homes rose 2.4 percent in August to its highest level since 2006. Sales are up 10.5 percent from a year ago and back to pre-COVID-19 levels of early 2020. Also last week, the Commerce Department reported that sales of new homes rose a solid 4.8 percent in August after surging 13.9 percent in July.
Historically low interest rates of less than 3 percent are pushing buyers into the market, even as home prices rise due to the lack of listings.
The median price for an existing single-family home reached $315,000 in August, up 11.7 percent from August 2019. The median price of a new home sold in August was $312,800.
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All four regions of the United States saw more contract signings for the third straight month.
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