The U.S. housing market is finally showing signs of recovery, with the number of houses going under contract increasing in June after four consecutive months of decline, according to a report from the National Association of Realtors (NAR).
Rise in Pending Home Sales Index
The Pending Home Sales Index, which serves as a leading indicator of home sales based on contract signings, rose by 0.3% to 76.8 in June. This positive growth defied economists’ expectations, as they had predicted a decline of 0.5%.
End of the Housing Recession
Lawrence Yun, NAR’s chief economist, sees this rise as a clear indication that the housing recession has come to an end. He notes that multiple offers on properties suggest an increase in housing demand, which is hindered by a lack of supply. To meet this growing demand, homebuilders are now scaling up production and hiring additional workers.
Regional Variances in Pending Home Sales
While pending home sales increased in the Northeast and Midwest regions from May to June, the South and West regions experienced a decline, according to NAR’s report.
