Year over year, however, contract signings were down 8.3%.
“Rising inventory and moderating price conditions are bringing buyers back to the market,” NAR chief economist Lawrence Yun said in a press release. “Affordability, however, remains challenging as home price gains are roughly three times wage growth.”
All four geographic regions saw increases, led by the Midwest, which clocked a 10.4% rise from July, and the South, where sales rose 8.6%. Pending transactions rose 7.2% in the West and 4.6% in the North.
“The more moderately priced regions of the South and Midwest are experiencing stronger signing of contracts to buy, which is not surprising,” Yun said. “This can be attributed to some employees who have the flexibility to work from anywhere, as they choose to reside in more affordable places.”
First American Deputy Chief Economist Odeta Kushi said housing demand is on the rise, thanks to increased inventory, near-historic low mortgage rates and favorable demographics.
“This is a strong purchase market, and the uptick in inventory is bringing back some buyers who pulled back during peak frenzy,” she said.