The index was 1.0 per cent higher than in June 2015. He said the Northeast saw the highest sales jump due to the fact that it was the only US region with “an adequate supply of homes for sale”. With last month’s minor improvement, the index is now at its second-highest reading over the past 12 months, but is noticeably down from this year’s peak level in April 115.
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Constricted supply and low affordability prevent a larger boost in home sales, even while mortgage rates linger near their all-time lows, according to the index.
“Today’s report suggests some softness in existing homes sales activity in the coming months”, said Blerina Uruci, an economist at Barclays Bank PLC.
The modest uptick in pending home sales reflected a substantial increase in pending sales in the Northeast, which surged up by 3.2 percent. Impending house income dropped 0.6% within the Northwest within the South. But the ongoing strength of home sales has some industry observers anxious that shrinking inventory and rising prices will weigh on home sales going forward.
June pending home sales came in well below expectations, as economists surveyed by MarketWatch forecast a strong 1.3% gain last month.
Completed sales of existing homes rose 1.1 percent in June to a seasonally adjusted annual rate of 5.57 million, the best pace since February 2007, the Realtors reported last week.
New home sales were up once again in June, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development. But interest rates, another key factor supporting home purchases, continue to hover near historically low levels.
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News Corp., owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for the National Association of Realtors.
