US pending home sales edge higher in August

(Sharecast News) - US pending home sales edged higher in August, according to the National Association of Realtors, but remained down sharply on an annualised basis. Contract signings rose 0.3% month‑on‑month, with gains in the South and West offset by declines in the Northeast and Midwest. Compared with a year earlier, however, pending sales were 4.7% lower, with all four major regions posting annual decreases.

Regionally, the Northeast saw a 4.2% monthly drop and a 3.9% annual decline, while the Midwest fell 1.6% on the month and 4.9% year‑on‑year. The South recorded a 2.3% monthly rise, but was still 3.8% lower than a year ago, and the West climbed 3% on the month but slipped 6.7% year‑on‑year.

Despite the broader annual weakness, several large metro areas posted notable year‑on‑year increases, led by Richmond, San Antonio, Memphis, Virginia Beach and Cincinnati.

"Buyers steadily entered into contracts in August even though mortgage rates increased," said NAR Chief Economist Dr Lawrence Yun. "However, the housing market is still sluggish, with contract signings below last year. This is due to higher mortgage rates offsetting the increased buying power created by job gains and income growth outpacing home price growth."

"Nationally, contract signings today are running roughly 30% below where they were in the years leading up to the pandemic," Yun added. "Transaction activity peaked in 2021 when mortgage rates fell to near 3%, a historic low, and has not approached that level since."









Reporting by Iain Gilbert at Sharecast.com