The U.S. housing sector is on a roll, with an increasing number of Americans leveraging on the record-low mortgage rates. The latest pending home sales data for August reached the highest level on record as more Americans signed contracts to buy homes in the month, suggesting that the hot U.S. housing market will maintain the strong spell well into fall.
All-Time High Pending Home Sales
The National Association of Realtors or NAR’s Pending Home Sales Index — a forward looking indicator of home sales based on contact signing — soared 8.8% from July to 132.8 in August, hitting a record high, according to the NAR survey since January 2001. Contract signings are 24.2% higher from the year-ago period as well.
It is worth mentioning that August marks the fourth consecutive month of gains as well as the third year-over-year rise since the pandemic hit the housing market hard. All four
A sale pending sign is posted in front of a home for sale in San Anselmo, California.
Justin Sullivan | Getty Images
Pending home sales rose 8.8% in August compared with July, reaching a record high pace, according to the National Association of Realtors survey, which dates to January 2001.
Sales were 24.2% higher than August 2019.
These sales track signed contracts on existing homes, not closings, so they are an indicator of closed sales in the next one to two months.
“Tremendously low mortgage rates – below 3% – have again helped pending home sales climb in August,” said Lawrence Yun, NAR’s chief economist. “Additionally, the Fed intends to hold short-term fed funds rates near 0% for the foreseeable future, which should, in the absence of inflationary pressure, keep mortgage rates low, and that will undoubtedly aid homebuyers continuing to enter the marketplace.”
Yun also noted that not all
(Bloomberg) — Sales of U.K. homes costing over 1 million pounds ($1.3 million) doubled last month, outperforming the rest of the market as wealthier buyers sought more space following the Covid-19 lockdown.
Agreed sales were 105% higher than a year earlier in August, compared to a 61% increase in sales of less expensive properties, according to property website Rightmove. Million-pound homes are also finding buyers 18 days faster than in 2019.
U.K. real estate is booming after the lockdown held back months of transactions. Demand is being further fueled by a temporary tax reduction and the pursuit of lifestyle changes after the pandemic.
Pricey properties outside of London are benefiting most. Expensive homes jumped 244% in the largely rural county of Norfolk, 174% in Wiltshire and 165% in coastal Cornwall.
“Demand in higher price brackets is more responsive to external events,” said Tom Bill, head
Herman Miller Aeron chair
Source: Herman Miller
Shares of office furniture retailer Herman Miller are surging after a blowout earnings report that showed the company is benefiting from the work-from-home trend.
Herman Miller jumped more than 35% in midday trading on Thursday, while the broader market was under pressure.
As the coronavirus pandemic forces millions of American to work from their homes, the company said customers are upgrading their homes with work and office furniture. The home office category increased nearly 300% since last year, the company said in its earnings release.
“They reported a completely blowout quarter last night. Why? Because people are rebuilding their homes,” CNBC’s Jim Cramer said on “Squawk on the Street” on Thursday.
Herman Miller reported fiscal first quarter earnings per share of $1.24, blowing past the earnings of 26 cents per share expected by Wall Street, according to Refinitiv. The company made $626.8 million
(Bloomberg) — Peloton Interactive Inc. reported quarterly sales that topped analyst projections as stay-at-home orders and gym closures continued to spur purchases of the company’s exercise equipment and workout subscriptions. The shares jumped about 10%.
The New York-based fitness technology company said fiscal fourth-quarter revenue came in at $607.1 million, up 172% from a year earlier. Analysts were looking for $581 million, according to data compiled by Bloomberg. Profit, excluding certain items, was $89.1 million, or 27 cents a share,
- Lowe’s just posted a 34.2% jump in year over year comparable sales in its second quarter.
- Executives said on Wednesday’s earnings call that the company’s strong performance has been driven by a surge of consumers that are increasingly “focused on the home.”
- Lowe’s also saw a 135% increase in year-over-year sales on its website, which has recently been revamped.
- “We are looking forward to building on this momentum on the back half of 2020 and for years to come,” CEO Marvin Ellison said on the call.
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Consumers are continuing to flock to Lowe’s for paint, interior decor, and lighting fixtures during the coronavirus pandemic, leading to bombshell quarterly earnings results for the home improvement retailer.
The North Carolina-based company reported total sales of $27.3 billion and net profits of $2.8 billion in the second quarter. Comparable sales were up 34.2% system-wide from last