According to the National Association of REALTORS® Pending Home Sales report, pending home sales in June decreased by 5.4% month-over-month and 0.3% year-over-year. However, at the local level, several markets posted notable year-over-year gains in pending home sales. Among the 50 largest metro areas, 10 markets posted large annual increases in pending home sales.
The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes.
NAR Chief Economist Lawrence Yun said that elevated mortgage rates and home prices are driving factors in today’s housing market, one where first-time homebuyers are struggling to break in. However, Yun said that job gains can support housing demand.
While June saw a softer market for pending home sales, there is hope for the market yet with the passage of the 21st Century ROAD to Housing Act and increasing job gains.
