Pending Home Sales Inch Down in July as Market Stays ‘Stuck’ in the Hands of National Association of Realtors®
Despite increasing inventory, contract signings dropped 0.4% in July, according to the National Association of Realtors® (NAR).
The National Association of Realtors® (NAR) has reported a 0.4% decrease in contract signings for the month of July, despite a 0.7% increase compared to this time last year. This drop is indicative of a stagnant market, as reported new-home sales also failed to accelerate despite an increase in inventory.
NAR Chief Economist Lawrence Yun stated, “Even with the recent decline in mortgage rates, home sales have not accelerated as expected. Lack of inventory continues to be the predominant factor holding back sales, but we are also seeing increased economic uncertainty, which may be causing some potential buyers to hold off on making a purchase.”
The report also found regional disparities, with the Northeast and Midwest seeing increases in contract signings while the South and West saw declines.
Yun also noted that the current market is favoring sellers, with low supply and high demand leading to higher prices. He stated, “Home price appreciation has been much stronger in the lower-price tier compared to homes sold in the upper-price tier, where inventory conditions are much tighter.”
The report also found that the median existing-home price for all housing types in July was $280,800, up 4.3% from July 2018. Total housing inventory at the end of July stood at 1.89 million units, up from 1.87 million in June but still 1.6% lower than this time last year.
Accurate, fact-checked rewrite of the article.