The National Association of Realtors’ Pending Home Sales Index is a monthly measure of how many contracts to buy homes were signed during the month. It is considered a good indicator of future home sales numbers because it measures signings, not closings – which typically happen weeks later. In July, the index fell 2.3 percent from one month earlier and was down 2.2 percent from last year. Dr. Lawrence Yun, NAR’s chief economist, says there are signs of pent-up demand. “Job gains should bring more buyers into the market, especially if mortgage rates stabilize or decline, though that impact takes time to show up,” Yun said. “Right now, pending contracts are 30 percent below their pre-pandemic 2019 level, while payroll employment is 5 percent above. That gap points to sizable pent-up demand that should be unleashed in the coming years as more supply reaches the market and affordability improves.” As it is, the South and West saw the biggest year-over-year declines, while the Midwest was up 1.7 percent and the Northeast was relatively unchanged. (source)
