More Americans signed contracts to get hold of homes in July, a sign that the hot housing market will continue into the fall season
COPPER CATHODES PRICE SPRING, Md. — More Americans signed contracts to buy homes back in July, suggesting the current hot housing market could continue in the type of fall.
The National Association of Realtors said Thursday that a majority of its index of pending sales rose 5. 9%, to 122. just last month. Previously plunged to a low of 69 in July, when buyers and sellers were needed to the sidelines by coronavirus closures and restrictions. An index of 100 brings the level of contract activity in 2001.
Contract agreements are a barometer of eventual, finalized purchases over the next 8 weeks, so this month’s numbers point continued market strength in August and as a result September.
Contract signings are now 15. 5% ahead pertaining to where they were last year, after significantly trailing last year’s quickness earlier in the year because of the pandemic.
Unique reports over the past week have shown that sales of generally known homes and new homes are both continuing to surge as oversized swaths of the country have opened back up this summer or people have figured out how to go about regular business xxx the ongoing pandemic. Sales of new homes jumped 13. 9% using July, while sales of existing homes climbed 24. 7%.
Low interest have also pushed people into the market. Interest selling prices on a 30-year fixed rate mortgage are at historic lows on the market 3%.
Besides the uncertainty of the broader economy, and it continues to see about a million people a week sign raise for unemployment benefits, the biggest concern in the housing market is truly the continuing lack of available homes. Low availabilit of existing homes presents forced buyers into the new home market, which has also been through its supply dwindle over the past year.
That drought of homes for sale is boosting prices. The median price to an existing home topped $300, 000 for the first time via record, coming in at $304, 100. That’s up a sharp main. 5% from July 2019. The median price for a new kitchen in July rose to $330, 600, up 7. 2% from at least one year ago.
All four regions saw more contract agreements for the second straight month. The Northeast saw contract signing rise 25. 2%; in the West these ladies were up 6. 8%. The Midwest saw gains of 3. 3% and in the South contract contracts were up 0. 9%.