The National Association of Realtors (NAR) announced on Thursday its seasonally adjusted pending home sales index (PHSI) climbed 5.9 percent m-o-m to 122.1 in July, after a revised 15.8 percent m-o-m jump in June (originally a 16.6 percent m-o-m surge).

Economists had expected pending home sales to advance 1.5 percent m-o-m in July.

On y-o-y basis, the index surged 15.5 percent after a 6.3 percent gain in June. This was the biggest increase since April 2012.

According to the report, all four regional indices recorded gains in contract activity on a m-o-m basis in July. The Northeast PHSI climbed 25.2 percent m-o-m to 112.3 in July, 20.6 percent jump from a year ago. In the Midwest, the index went up 3.3 percent m-o-m to 114.6 last month, up 15.4 percent from July 2019. Pending home sales in the South rose 0.9 percent m-o-m to an index of 142.0 in July, up 14.9 percent from July 2019. The index in the West rose 6.8 advanced m-o-m in July to 106.4, up 13.2 percent from a year ago.

“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market,” noted Lawrence Yun, NAR’s chief economist. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”