Dive Brief:
- Contracts for sales of existing homes – the third of the three monthly reports that include existing-home sales and new-home sales – rose from June to July, though the National Association of Realtors index for the activity was below July 2013.
- July came in at 105.9, up 3.3% from June and was the fourth monthly increase in the past five months. However, July 2013 was at 108.2.
- The group's economist, Lawrence Yun, said he expects existing home sales for the year to finish at about 4.98 million when all is said and done. This is compared with 2013's 5.09 million.
Dive Insight:
Yun cited several economic factors that encourage sales contracts. Interest rates are low, the rate of price increases is slowing, jobs are being added to the economy, and more existing and new homes are coming into inventory. The increased inventory, however, reduces the pressure on buyers to move quickly and gives them more time to shop and decide.