The pending sales index, a forward-looking indicator based on signed contracts to buy a home, rather than the final sales that are accounted for in existing home sales, was at 76.8 in June. An index of 100 is equal to the level of contract activity in 2001. Year over year, pending transactions fell by 15.6%.
“The recovery has not taken place, but the housing recession is over,” said NAR Chief economist Lawrence Yun on Thursday. “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.” This story is developing and will be updated.
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