On November 19, 2020, a sign for sale in Washington, DC indicated that the house was “under contract.”
Sol Loeb | AFP | Getty Images
According to data from the National Association of Realtors, the number of existing home purchase contracts signed in August increased by 8.1% from the previous month, as buyers encountered higher inventory and slightly better prices.
Analysts expect a monthly increase of 1%. Compared with August 2020, the number of contracts still dropped by 8.3%.
According to NAR data, the increase in August came after a two-month decline.
The sales of these so-called homes for sale are indicators of contract signing in the next one to two months.
Lawrence Yun, chief economist at NAR, said: “Rising inventory and moderate price conditions are returning buyers to the market.” “However, affordability is still challenging because house price increases are about wage growth. Tripled.”
According to the latest Standard & Poor’s Case-Shiller House Price Index, national house prices rose by nearly 20% year-on-year in July, but this is a three-month average dating back to May. According to real estate agents, the increase in supply has reduced the number of bidding wars.
Sales grew the fastest in the cheapest regions, the Midwest and the South, reflecting how the shift to remote work in certain industries has motivated buyers to move.
“It’s not surprising that areas with more affordable prices in the South and Midwest are signing stronger purchase contracts,” Yun said. “This can be attributed to the flexibility of some employees to work anywhere because they choose to live in more affordable places.”
In the Midwest, sales increased by 10.4% per month, down 5.9% from August 2020. In the south, sales for sale increased by 8.6% per month and fell by 6.3% annually.
Sales in the western region increased by 7.2% each month and decreased by 9.2% year-on-year. Sales for sale in the Northeast region increased by 4.6% month-on-month, but decreased by 15.8% year-on-year.