WASHINGTON, D.C. - After months of declining home sales, pending home sales increased by almost 2% over a year ago.
WASHINGTON, D.C. - After months of declining home sales, pending home sales increased by almost 2% over a year ago.
The National Association of Realtors reported an indicator based on contract signings, climbed 1.6 percent in August, reversing the prior month’s decrease.
Year-over-year contract signings jumped 2.5 percent. The Northeast region is 0.7% higher than a year ago; the Midwest is 0.2% higher than August 2018; the South increased 1.8% from last August, and the West grew 8.0% from a year ago.
EXCEPTIONALLY LOW INTEREST RATES
“It is very encouraging that buyers are responding to exceptionally low-interest rates,” said Lawrence Yun, NAR chief economist. “The notable sales slump in the West region over recent years appears to be over.
Rising demand will reaccelerate home price appreciation in the absence of more supply.”
Historically, low-interest rates will affect economic growth, especially home buying, going forward, Yun said.
Interest rates expected to remain low and home sales are forecasted to rise in the coming months and into 2020, he said.
New home construction is down 2% in 2019.
“The hope is that housing starts to quickly move into higher gear to meet the higher demand.
Moreover, broader economic growth will strengthen from increased housing activity,” Yun said.
Home sales are forecasted to rise 0.6% in 2019 and another 3.4% in 2020.
Housing starts are predicted to increase by 2% in 2019 and jump an additional 10.6% in 2020.
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