According to the most recent Pending Home Sales Index from the National Association of Realtors (NAR), pending home sales rose to 5.9% in July, which continues a streak of three consecutive months of growth.
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market,” said Lawrence Yun, NAR’s chief economist. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
Yun is forecasting existing-home sales to jump up to 5.8 million in the second half, with an expected rebound bringing the full-year level of existing home sales to 5.4 million. He sees this number rising to 5.86 million in 2021.
“Anecdotally, Realtors® are telling me there is no shortage of clients or home seekers, but that scarce inventory remains a problem,” Yun said. “If 20% more homes were on the market, we would have 20% more sales, because demand is that high.” He added that he expects housing starts to average at 1.35 million in 2020 and to pick up in 2021, to 1.43 million.