By MATT OTT
SILVER SPRING, Md. (AP) — Extra People signed contracts to purchase properties in July, suggesting the present scorching housing market may proceed within the fall.
The Nationwide Affiliation of Realtors mentioned Thursday that its index of pending gross sales rose 5.9%, to 122.1 final month. It had plunged to a low of 69 in April, when consumers and sellers had been pressured to the sidelines by coronavirus closures and restrictions. An index of 100 represents the extent of contract exercise in 2001.
Contract signings are a barometer of eventual, finalized purchases over the subsequent two months, so this month’s numbers level continued market power in August and September.
Contract signings are actually 15.5% forward of the place they had been final 12 months, after considerably trailing final 12 months’s tempo earlier within the 12 months due to the pandemic.
Completely different reviews over the previous week have proven that gross sales of current properties and new properties are each persevering with to surge as massive swaths of the nation have opened again up this summer season and folks have discovered how you can go about common enterprise regardless of the continued pandemic. Gross sales of latest properties jumped 13.9% in July, whereas gross sales of current properties climbed 24.7%.
Low rates of interest have additionally pushed individuals into the market. Rates of interest on a 30-year fastened price mortgage are at historic lows round three%.
Apart from the uncertainty of the broader financial system, which continues to see about one million individuals per week join unemployment advantages, the largest concern within the housing market is the persevering with lack of accessible properties. Low provide of current properties has pressured consumers into the brand new residence market, which has additionally seen its provide dwindle over the previous 12 months.
That scarcity of properties on the market is boosting costs. The median worth for an current residence topped $300,000 for the primary time on file, coming in at $304,100. That’s up a pointy eight.5% from July 2019. The median worth for a brand new residence in July rose to $330,600, up 7.2% from one 12 months in the past.
All 4 areas noticed extra contract signings for the second straight month. The Northeast noticed contract signing improve 25.2%; within the West they had been up 6.eight%. The Midwest noticed positive factors of three.three% and within the South contract signings had been up zero.9%.