Pending us home sales continue climb

Pending US home sales rebounded in July and have now risen in four of the last five months, according to the National Association of Realtors.

Sales jumped 3.3 per cent in July from the previous month to reach its highest level since August last year, although activity remains 2.1 per cent below one year ago.

All major regions experienced healthy gains except for the Midwest, which saw a slight decline.

Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity: "Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 20121.

"The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer."

Yun adds: "More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market."

Yun expects existing-homes sales to be down 2.1 per cent this year to 4.98 million, compared to 5.09 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6 per cent this year and 4 and 5 per cent next year.

Photo: Stephan Rebernik