The NAR’s pending home sales index increased 3.3 percent in July to 105.9, its highest level since August 2013.
Based on contract signings, the increase came in much stronger than expected.
Pending home sales have climbed in four of the past five months.
Lawrence Yun, NAR chief economist, said that favorable housing conditions spurred increased contract activity last month.”Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” he said.
“More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”