US pending home sales rise 3% in June, 1st gain in 3 months
Recovery has not taken place, but housing recession over, says economist
By Ovunc Kutlu
ISTANBUL (AA) - US pending home sales rose 3% in June, compared to the previous month, according to data released Thursday by the National Association of Realtors (NAR).
It marked the first increase in three months, NAR said in a statement.
The market anticipated sales to show a 0.5% decline, while the figure for May was revised to 2.5%, from 2.7%.
Pending sales in June were down 15.6% compared to the same month last year.
"The recovery has not taken place, but the housing recession is over," said Lawrence Yun, the association’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."
"With consumer price inflation calming close to the Federal Reserve's desired conditions, mortgage rates look to have topped out," added Yun. "Given the ongoing job additions, any meaningful decline in mortgage rates could lead to a rush of buyers later in the year and into the next."
Pending home sales measure the change in the number of houses under contract to be sold but still awaiting transaction. They exclude new home construction. They are considered a forward-looking indicator of home sales based on contract signings.
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