Pending home sales in the U.S. rose in July after two consecutive months of declines, as demand increased almost across the Board, suggesting that the housing market remains on solid ground, despite the decline last month.
The national Association of realtors reported Wednesday that the index of pending home sales, based on contracts signed last month, rose 1.3 percent to 111.3, finishing in second place for ten years.
Incomplete contracts become sales after a month or two. Last month was supposed to rise home resales after they declined 3.2 percent in July. Economists had forecast that pending home sales will grow by 0.6 percent last month.
The demand for housing is currently defined by the labour market, which continues to generate stable growth in wages as you get closer to full employment. Information about housing prices, residential construction, new home sales and the confidence of homebuilders were optimistic in recent months.
Pending home sales rose 1.4 percent compared to last year. Transactions increased by 0.8 percent in the northeast and jumped 7.3 percent in the West. They grew 0.8 percent in the South, but fell 2.9 percent in the Midwest.