Sales Contracts Soften On Inventory Woes

Dated: July 1 2016

Views: 267

Pending home sales posted the first decrease in three months in May as well as the first year-over-year decline in nearly two years, according to the National Association of REALTORS®’s Pending Home Sales Index, a forward-looking indicator based on contract signings. All four major regions across the U.S. saw a decrease in pending home sales last month. 


NAR’s Pending Home Sales Index fell 3.7 percent to a 110.8 reading in May (down from 115 in April and 111 in May 2015). 



“With demand holding firm this spring and homes selling even faster than a year ago, the notable increase in closings in recent months took a dent out of what was available for sale in May and ultimately dragged down contract activity,” says Lawrence Yun, NAR’s chief economist. “REALTORS® are acknowledging with increasing frequency lately that buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market.”


Home supplies in many markets continues to be scant, while mortgage rates are hovering near three-year lows and buyer demand is high. 


“Total housing inventory at the end of each month has remarkably decreased year-over-year now for an entire year,” Yun says. “There are simply not enough homes coming onto the market to catch up with demand and to keep prices more in line with inflation and wage growth.”


The United Kingdom’s recent decision to leave the European Union also could have an impact on the U.S. housing market in the coming months, Yun notes. 


“In the short term, volatility in the financial markets could very likely lead to even lower mortgage rates and increased demand from foreign buyers looking for a safer place to invest their cash,” he says. “On the other hand, any prolonged market angst and further economic uncertainty overseas could negatively impact our economy and end up tempering the overall appetite for home buying.”



Source: National Association of REALTORS®


Find your next home NOW!

http://www.TimEnzweiler.com


Image titleFeatured properties may not be listed by the office/agent presenting this brochure.  Information has not been verified, is not guaranteed and is subject to change.  The data relating to real estate for sale on this report comes in part from the Internet Data Exchange program of Northern Kentucky MLS. 
Equal Housing Opportunity
At Regional Realty, we are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. 
Blog author image

Wendie Neely

Wendie Neely is licensed in both Kentucky and Ohio. Her background includes several years as a Real Estate Appraiser placing her in a unique position to help Buyers and Sellers understand property val....

Want to Advertise on this Site?

Latest Blog Posts

9 Tricks For Showings To Make Buyers Say Omg Wow

Selling your home and you want top dollar in the shortest amount of time!  Although putting a sign in the yard and putting it in the Multiple Listing Service with a realtor will bring a lot of

Read More

15 Tips For How To Prepare Your Home For Sale

If you want to know how to prepare your home for sale HGTV style; follow the steps of Sabrina Soto, home-staging expert and host of HGTV's Get It Sold, shares her tips on what to do

Read More

Sell Your Home For Top Dollar All By Yourself

How to Sell Your Home Better Than Any Ordinary AgentWelcome FSBOs!!.Unlike some real estate agents, I don’t view For Sale By Owners as greedy or ignorant, but as patient and brave individuals for

Read More

DHF Questionnaire

What is your budget?How many bedrooms would you like?How many bathrooms would you like?Do you want a condo, townhome, single family home, multi family home, commercial, or land?What style would you

Read More