US pending home sales rebounds in June; property shortage constraints mkt

Contracts to buy previously owned homes rebounded in June after three straight monthly declines, but the housing market remains constrained by a shortage of properties available for sale.

The National Association of Realtors said on Monday its Pending Home Sales Index, based on contracts signed last month, jumped 1.5 per cent to a reading of 110.2. Economists had forecast pending home sales rising 0.7 per cent last month.

Pending home contracts become sales after a month or two, and last month's surge implied a pickup in existing home sales after they dropped 1.8 per cent in June. The housing market has been stymied by a dearth of properties, which has pushed up prices and sidelined first-time homebuyers.

"Market conditions in many areas continue to be fast-paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria," said Lawrence Yun, the NAR's chief economist.

Pending home sales increased 0.5 per cent from a year ago. In June, contracts rose 0.7 per cent in the Northeast and advanced 2.1 percent in the South. They shot up 2.9 per cent in the West but fell 0.5 per cent Midwest.