Signed Contracts Rise For Existing U.S. Homes

Signed contracts to buy existing homes in the U.S. increased 8.1 per cent month-to-month in August as buyers encountered higher inventory and slightly more favourable prices, says the National Association of Realtors (NAR). August’s increase follows a two-month decline and sales rose the most in the least expensive regions, mainly the midwest and south, reflecting how the shift to remote work in some industries gave buyers an incentive to relocate. However, although analysts were expecting a one per cent monthly rise, signings were still down 8.3 per cent compared to August 2020. Lawrence Yun, NAR’s chief economist, says that although rising inventory and moderating price conditions are bringing buyers back to the market, affordability remains a challenge since home price gains are roughly three times the wage growth.