Pending Home Sales Rise Again:

U.S. home buyer demand remained steady in July, an index of pending home sales from the National Association of Realtors, which represents signed contracts, not closings, rose 0.5 percent from an upwardly revised June reading.

The index is now up 7.4 percent from one year ago. The index has increased year-over-year for 11 consecutive months and is the third highest reading of 2015.

Just about every metric showed a very vibrant housing market that is constrained only by the lack of good quality available inventory.  If there were more of it...it would be snapped up.

"Contract activity in most of the country held steady last month, which bodes well for existing-sales to maintain their recent elevated pace to close out the summer," said Lawrence Yun, chief economist for the NAR in a release. "While demand and sales continue to be stronger than earlier this year, Realtors have reported since the spring that available listings in affordable price ranges remain elusive for some buyers trying to reach the market and are likely holding back sales from being more robust."

Looking ahead, with inventory shortages likely to persist into the fall, Yun expects the national median existing-home price to increase 6.3 percent in 2015 to $221,400. Yun forecasts total existing-home sales this year to increase 7.1 percent to around 5.29 million, about 25 percent below the prior peak set in 2005 (7.08 million). 



Source: Brian Woolley
Prospect Mortgage