Americans signed more contracts to buy homes in June, snapping a three-month decline in pending sales.
The National Association of Realtors says that its pending home sales index rose 1.5 per cent in June to 110.2. The gain still puts the pace of contract signings below its March level. The index has increased just 0.5 per cent over the past 12 months.
But the increase is unlikely to cause a burst of home-buying. Prices are climbing faster than wages while number of homes listed for sale has plunged. There were 1.96 million homes for sale in June, a 7.1 per cent decline from a year ago.
Pending sales contracts are a barometer of future purchases. A sale is typically completed a month or two after a contract is signed.