Pending Home Sales Rose 8.1% in August
Washington, DC, September 29, 2021-The Pending Home Sales Index (PHSI) increased 8.1% to 119.5 in August, according to the National Association of Realtors. Year-over-year, signings dipped 8.3%. An index of 100 is equal to the level of contract activity in 2001.
"Rising inventory and moderating price conditions are bringing buyers back to the market," said Lawrence Yun, NAR's chief economist. "Affordability, however, remains challenging as home price gains are roughly three times wage growth."
Such an imbalance in the market is unsustainable over the long-term, according to Yun.
"The more moderately priced regions of the South and Midwest are experiencing stronger signing of contracts to buy, which is not surprising," Yun continued. "This can be attributed to some employees who have the flexibility to work from anywhere, as they choose to reside in more affordable places."
Realtor.com's Hottest Housing Markets data revealed that out of the largest 40 metros, the most improved metros over the past year, as of September 27, were Orlando-Kissimmee-Sanford, Florida; Tampa-St. Petersburg-Clearwater, Florida; Nashville-Davidson-Murfreesboro-Franklin, Tennessee; Jacksonville, Florida; and Austin-Round Rock, Texas.