Figures out of Washington Monday morning pointed to contracts to buy previously owned homes surging in June after three straight monthly declines. However, the National Association of Realtors (NAR) also said the housing market stateside remains restricted by a shortage of properties available for sale.
NAR's Pending Home Sales Index, based on contracts signed last month, jumped 1.5% to a reading of 110.2. Economists had forecast pending home sales rising 0.7% 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% in June. The housing market has been stymied by a dearth of properties, which has pushed up prices and sidelined first-time home buyers.
Pending home sales increased 0.5% from a year ago.
