American Pending Home Sales Hit Seven-Month High in August

Source: National Association of Realtors

US pending home sales rebounded in August to carve the highest level in seven months, driven by higher supply and moderating prices. XHB is up 1.00%

• The Pending Home Sales Index (PHS) stood at 119.5 in August, the highest since January’s 123.4. An index of 100 is equal to the contract activity levels in 2001.
• The latest reading is 8.1% higher than July’s 110.5 but is 8.3% lower than August 2020’s 130.3.
• All four regions recorded month-on-month growth in contract activity. The same territories posted a decline year on year, with the northeast recording a double-digit drop.
• NAR Chief Economist Lawrence Yun attributed the growth to rising inventory and moderating price conditions which have brought back buyers back to the market.
• Yun noted, however, that the market could be hit by an imbalance over the long-term should home prices continue to surge, with current price gains roughly thrice wage growth.