US pending home sales expanded in most of the country in July and reached their second highest reading in over a decade, according to the National Association of Realtors. Only the Midwest saw a dip in contract activity last month.
The Pending Home Sales Index rose 1.3% to 111.3 in July from a downwardly revised 109.9 in June and is now 1.4% higher than July 2015 (109.8). The index is now at its second highest reading this year after April (115.0).
NAR chief economist Lawrence Yun says a sizeable jump in the West lifted pending home sales higher in July.
He said: "Amidst tight inventory conditions that have lingered the entire summer, contract activity last month was able to pick up at least modestly in a majority of areas
"More home shoppers having success is good news for the housing market heading into the fall, but buyers still have few choices and little time before deciding to make an offer on a home available for sale. There’s little doubt there’d be more sales activity right now if there were more affordable listings on the market."