When a buyer’s offer is accepted and a contract to buy is signed, that home’s sale is considered pending until it closes weeks later. Because most pending sales end in final sales, contract signings are considered a good indicator of future sales numbers. That’s one of the reasons the National Association of Realtors tracks them each month. In July, the NAR’s Pending Home Sales Index found signings relatively flat, with pending sales down 0.4 percent from the month before and 0.7 percent lower than last year at the same time. Lawrence Yun, NAR’s chief economist, says buyers are hesitant but interested. “Rising mortgage applications for home purchase are an early indicator of more serious buyers in the marketplace, though many have not yet committed to a pending contract,” Yun said. “The Federal Reserve signaling that they may enact a lower interest rate policy should steadily enlarge the pool of eligible home buyers in the upcoming months.” Regionally, contract signings were flat in the Northeast and South. The Midwest saw a 4 percent decline and the West was up 3.7 percent month-over-month. (source)
