An index reading of 100 is the same as the level of contract activity in 2001.
“August in anticipation of sales activity offers a preview for the turnover of autumn,” Lisa Sturtevant, the chief economist at Clear MLSsaid in a statement. “And although the newly rose in August pending contract activity, the closed sale in the coming months will probably still be around the levels of last year.”
Regionally, the level of signing contract month for the month-over month in the northeast (1.1%), but in the midwest (8.7%), the south (3.1%) and West (5.0%). All four regions booked annual increases, with the Midwest (76.4) achieving the largest increase by 6.7%, followed by the increase of 4.2% in the south (88.9), a jump of 2.6% in the northeast (63.7) and an increase of 0.2% in the West (59.3).
“Lower mortgage interest rate more home buyers enable to go under contract,” said Lawrence Yun, the most important economist of Nar, in a statement. “In the midwest, low mortgage interest in combination with high affordability attract more buyers compared to other regions.”
Sturtevant added that buyers on top of lower mortgage interest in August also had the advantage of more inventory on the market. However, she warned that the stock levels can shrink this fall, which is why she expects a slow autumn house market.
A recent one Analysis by clear MLS Has an increase in the number of sellers who pull their homes off the market, “she said.” The rise in the cancellation reflects the transition market for the home, because the sellers take their home from the market when they do not get offers for the price they had hoped. ”
Odeta Khushi, the deputy chief economist at First AmericanHas a more optimistic picture.
“Enjoying mortgage request data from September indicate Extra Momentum, where buyers respond to lower rates. This suggests that the modest improvement in current sale can continue in the fall, especially if the affordability conditions stabilize,” Khushi said in a statement.
“Looking ahead, the sale this year is likely to depend on the moments of ‘life’ – work changes, marriages, births and other personal milestones that stimulate housing decisions. Affordability challenges and structural inventory shortages continue to weigh in the activities of the buyer. Lower rates help, but they are not a Paala for the housing market.”
When it comes to how brokers believe that the end of the year will take place, Nar’s Realtors Confidence Index Showed that 19% of the Nar members expect copper traffic to increase in the next three months.
This statistics has risen from 16% per month earlier and the same as a year ago. When it comes to seller traffic, 19% of respondents expect to see an increase in the next three months, a decrease of 21% a month ago, but slightly higher than 18% a year earlier.
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