(Reuters) – Contracts to buy previously owned homes increased in June for the first time since February, suggesting that the housing market is recovering from the low point of its recent declines.
The National Association of Realtors (NAR) said on Thursday that its Pending Home Sales Index, based on signed contracts that become sales after a month or two, rose 0.3% to 76.8 in June. Economists polled by Reuters had forecast a 0.5% decrease in contracts signed.
Although pending home sales were still down 15.6% in June on a year-on-year basis, there is a growing body of evidence that the housing market is bottoming out.
“The recovery has not taken place, but the housing recession is over,” said Lawrence Yun, the NAR’s chief economist. “The presence of multiple offers implies that housing demand is not being satisfied due to lack of supply. Homebuilders are ramping up production and hiring workers.”
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Source: www.reuters.com
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