The National Association of Realtors’ leading indicator of future home sales rebounded 2.4% in July to a two-year high, after falling 1.4% in June.
The Realtors reported that its
The PSI rose in three of the four geographic regions tracked by NAR. The Realtors blamed a decline in the Western region to an “acute inventory shortage.”
Meanwhile, the trade group is forecasting that existing home sales will rise as much as 9% this year, and up to 8% in 2013. Home values will increase 10% “cumulatively” over the next two years, NAR predicted.
“Falling visible and shadow inventories point toward continuing price gains,” said chief economist Lawrence Yun.
NAR's pending sales index is based on signed contracts, which usually translates into actual sales in a month or two. An index figure of 100 is equal to contract activity during 2001.
Overall, the PSI reading in July is up 12.4% from a year ago.
