Pending home sales declined in July but remain well above year-ago levels, according to the NATIONAL ASSOCIATION OF REALTORS®. The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, slipped 1.3 percent to 89.7 in July from June but is 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not closings.
All regions show monthly declines except for the West, which continues to show the highest level of sales contract activity. The PHSI in the Northeast declined 2.0 percent to 67.5 in July but is 9.7 percent above July 2010.
NAR Chief Economist Lawrence Yun said, "The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market."
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Existing-home sales declined in July from an upwardly revised June pace but are notably higher than a year ago, according to the National Association of REALTORS®. Monthly gains in the Northeast and Midwest were offset by declines in the West and South.
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 3.5 percent in July, but are 21.0 percent above July 2010, which was a cyclical low immediately following the expiration of the home buyer tax credit.
Regionally, existing-home sales in the Northeast rose 2.7 percent in July and are 19.0 percent above July 2010. The median price in the Northeast was $245,600, down 6.8 percent from a year ago.
Lawrence Yun, NAR chief economist, said there is a tug and pull on the market. "Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers," he said. "Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs."
View NAR's press release here.
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Pending home sales increased in June following a wide swing down in April and then up in May, according to the National Association of REALTORS® (NAR). The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, rose 2.4 percent in June from May and is 19.8 percent above June 2010, which was the low point immediately following expiration of the home buyer tax credit. The data reflects contracts but not closings. The PHSI in the Northeast slipped 0.4 percent in June but is 19.4 percent higher than June 2010.
Lawrence Yun, NAR chief economist, said there may be some increase in closed existing-home sales. "For the majority of transactions, the lag time between pending contacts to actual closings is one to two months. Therefore, the two consecutive months of rising activity should lead to overall improvement in closed sales in upcoming months," he said. "Though a higher than normal cancellation rate can hold back final closing figures, it could well be that some past cancellations are nothing more than delayed buying decisions rather than outright cancellations."
NeighborWorks America Media Relations, 202-220-6317
Existing-home sales eased in June as contract cancellations spiked unexpectedly, although prices were up slightly, according to the NATIONAL ASSOCIATION OF REALTORS®.
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 0.8 percent to a seasonally adjusted annual rate of 4.77 million in June from May, and remain 8.8 percent below June 2010, which was the scheduled closing deadline for the home buyer tax credit.
Regionally, existing-home sales in the Northeast fell 5.2 percent and are 17.0 percent below June 2010. The median price in the Northeast was $261,000, up 3.1 percent from a year ago.
For more information, please see NAR’s press release.
