Signed contracts to buy existing homes in the U.S. surged by more than expected in August, data from the National Association of Realtors showed Wednesday.
Pending home sales increased 8.1 percent compared with the prior month, ending a two-month stretch of declines. Analysts had forecast a one percent gain.
Despite the gain, signings are down 8.3 percent from a year ago.
“Rising inventory and moderating price conditions are bringing buyers back to he market,” said Lawrence Yun, the NAR’s chief economist. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.”
Yun added that such an imbalance between wage gains and home price appreciation is unsustainable over the long term. On Tuesday, the Case-Shiller home price index showed prices up nearly 20 percent year over year.
Pending sales were up in each of the four major regions compared with July. They were down