Pending home sales, or signed real estate contracts, for August declined by 1% from July and 2.2% from the same time last year according to the National Association of Realtors’ (NAR) most recent Pending Home Sales Index report. Nevertheless, the NAR pointed out that August’s data reflects an “average level of contract activity” for 4 consecutive months. On a regional level, the Northwest, Midwest and the South all saw declines in pending home sales activity while the West saw an increase of 2.6% over the previous month making it the 4th-consecutive month of increases.
NAR Chief Economist, Lawrence Yun, attributed the slight decline in contract signings to “fewer distressed sales and less investor activity” and expressed optimism that the shift in the market would attract more traditional and first-time homebuyers. Yun stated, “The employment outlook for young adults is brightening and their incomes finally appear to be rising. Jobs and income gains will help repay student debt and better position first-time buyers, setting the stage for improved sales growth in upcoming years.” Read more at http://bit.ly/YNZ9WD.