Pending Home Sales Slip But Remain High

Despite falling for the first time in five months, the National Association of Realtors’ Pending Home Sales Index remains 8 percent higher than one year ago, according to June’s results. The index registered a nearly 2 percent drop from the month before but still managed to post this year’s third best reading. Because of this, Lawrence Yun, NAR’s chief economist, believes the dip won’t affect the solid pace of home sales this summer. “Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level,” Yun said. “The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.” Yun also noted the increasing number of current homeowners that are opting to sell their homes in hopes of trading up or down. Though this is generally a positive development, it doesn’t do anything to improve inventory levels as most of these sellers are likely buying another home. Regionally, the index was up in the Northeast and West, but down 3 percent in both the Midwest and South. More here.

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