FX.co ★ U.S. Pending Home Sales Rebound Much More Than Expected In June

The National Association of Realtors (NAR) released a report on Wednesday indicating a significant recovery in pending home sales in the U.S. for June.

According to NAR, pending home sales rose by 4.8 percent to 74.3 in June, following a decline of 1.9 percent to a revised figure of 70.9 in May.

Economists had anticipated a 1.3 percent increase in pending home sales, in contrast to the originally reported 2.1 percent drop for the previous month.

A pending home sale is a sale in which a contract has been signed but not yet finalized. Typically, it takes four to six weeks to close a contracted sale.

"The rise in housing inventory is starting to result in more contract signings," stated NAR Chief Economist Lawrence Yun. "The intensity of multiple offers has lessened, and buyers are now in a more advantageous position."

The greater-than-expected recovery in pending home sales was observed across all four regions of the country, with the South witnessing a leading 6.3 percent increase.

Pending home sales in the Midwest also climbed by 4.7 percent, while those in the West and Northeast saw jumps of 3.4 percent and 3.0 percent, respectively.

"Expect even more inventory to enter the housing market in the upcoming months before the typical seasonal declines in winter," Yun added.

He continued, "The Northeast’s modest increase in contract signings is attributable to the ongoing housing shortage in the region, resulting in stronger home price gains. It is an opportune time to list a property."