The numbers: U.S. Pat. pending house sales rose 0.9% in June, the National Association of Realtors said Monday.
What happened: The NAR index, which records real estate transactions that have been signed but not yet completed, rose to a level of 1
Economists had forecast an increase of 0.8% for the month.
Large Image: The real estate market seems to be increasingly under steam as demand continues to overwhelm supply. The sale of privately owned homes tumbled to a five-month low in June, the Realtors said earlier this month. However, June was the first increase in inventory in three years that may have favored the sale of floating homes.
In June, home sales in the northeast increased by 1.4% and in the Midwest by 0.5%. In the South they rose by 1.1% and in the West by 0.7%. Sales in all four regions are lower than a year ago.
Also read: Home ownership jumps to 4-year high, while more Americans make profits
What they say: International purchases of US real estate slipped by 21% from April 2017 to March 2018 NAR said last week. Foreign buyers and younger immigrants accounted for 8% of all transactions during this period, up from 10% in the 12 months to March 2017. Real estate agents are uncertain whether this decline is temporary or will continue. NAR cites this uncertainty as "ambiguity and ambiguity about policy changes related to international trade and immigration".
The Group expects total home ownership sales to decline by 1% year-on-year in 2018, while the median price for existing homes is expected to grow 5%.
Contracts are about 45 to 60 days ahead of sales, but some economists have suggested that the sales data for pending sales, which are expected to forecast the sale of homes, are more different.
Also read: Americans Still Avoid Floating Rate Mortgages 10 Years After Crisis
Market Reaction: This year, the SPDR S & P Homebuilders ETF
XHB, + 0.61%
has fallen by about 11% due to concerns over the real estate market.