Pending home sales experienced a slight downturn in June, declining by 0.8% compared to the previous month, according to the National Association of REALTORS® (NAR). This dip occurred even as the available housing inventory saw an increase. The Northeast was the only region to register growth in pending sales, with a 2.1% rise, while the West saw the most significant drop at 3.9%.
Key Takeaways
- Pending home sales decreased by 0.8% in June, following a 1.8% increase in May.
- Housing inventory continued to grow during the same period.
- The Northeast was the only region with a monthly increase in pending sales.
- Year-over-year, pending sales nationwide were down 2.8%.
- Realtors are expressing optimism about future market activity, supported by rising mortgage applications.
June’s Shifting Market Dynamics
The NAR’s Pending Home Sales Index revealed a nationwide decrease of 0.8% in contract signings from May to June. This trend contrasts with the 1.8% increase observed in May. Despite this slowdown, the overall supply of homes on the market continued to expand.
Regional Performance Variances
Geographically, the housing market showed mixed results. The Northeast bucked the national trend with a 2.1% increase in pending sales. However, other regions experienced declines: the West saw a substantial 3.9% drop, the Midwest fell by 0.8%, and the South recorded a 0.7% decrease.
Year-Over-Year Trends
On an annual basis, pending sales were down 2.8% nationwide compared to June of the previous year. Regional year-over-year figures showed the Northeast remaining unchanged, while the West experienced a 7.3% decline. The South saw a 2.9% decrease, and the Midwest was down 0.9%.
Outlook for the Housing Market
Pending sales serve as a leading indicator for future existing-home sales. NAR Chief Economist Lawrence Yun noted the continuation of small declines in contract signings despite rising inventory. However, he also pointed to early indications of potential contract signings increasing, citing optimism among Realtors. This confidence is bolstered by a recent rise in mortgage applications, suggesting a potential uptick in home buying and selling activity in the coming months.