Pending Home Sales Increase for First Time in 3 Months

Contracts to buy previously owned homes unexpectedly rose in June after two straight monthly declines, but the housing market remains hobbled by a dearth of properties available for sale.

The National Association of Realtors said on Monday its Pending Home Sales Index, based on contracts signed last month, increased 0.9 percent to a reading of 106.9. Economists had forecast pending home sales unchanged in June.

Pending home contracts become sales after a month or two, and last month’s surprise rise suggested a rebound in existing home sales, which have declined for three straight months. But any bounce back in home sales is likely to limited by a chronic shortage of homes, which is keeping house prices elevated.

Pending home sales fell 2.5 percent in June from a year ago. Housing data has softened in recent months. Housing starts and building permits dropped to a nine-month low in June amid more expensive building materials and shortages of land and labor. New home sales tumbled to an eight-month low in June.

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