Pending home sales slipped 2.1% in May
Pending home sales in May 2024 slipped 2.1% nationwide from where they stood in April. The report from the National Association of Realtors® (NAR) details how the Pending Home Sales Index (PHSI) decreased to 70.8 in May, which is down 6.6% from May of 2023. For reference, an index of 100 is equal to the contract activity in 2001.
While contract signings in the Northeast and Western regions did post small increases, the national average was impacted by decreases in the Midwest and the South in particular, bringing the overall average down by 2.1%. Additionally, all four regions reported decreases from their year-over-year numbers from a year ago. Of the four regions, the South once again saw the largest decrease in this report.
“The market is at an interesting point with rising inventory and lower demand,” NAR Chief Economist Lawrence Yun said. “Supply and demand movements suggest easing home price appreciation in upcoming months. Inevitably, more inventory in a job-creating economy will lead to greater home buying, especially when mortgage rates descend.”
Regional breakdown
“The first half of the year did not meet expectations regarding home sales but exceeded expectations related to home prices,” Yun added. “In the second half of 2024, look for moderately lower mortgage rates, higher home sales and stabilizing home prices.”
Here's the regional breakdown for the May report:
- Northeast: up 1.1% to 63.6, down 2.3% from May 2023
- Midwest: down 0.4% to 70.4, down 5.6% from May 2023
- South: down 5.5% to 83.7, down 10.4% from May 2023
- West: up 1.4% to 56.7, down 2.1% from May 2023
With regional markets in a state of flux, it's important to remember that homeownership is a marathon, not a sprint. The modern adage that you should strive to "date the rate, but marry the house" is especially true in the housing market today. That's why it's equally important to work with a local loan officer to explore all your options as you pursue the home of your dreams.
Source: https://www.nar.realtor/newsroom/pending-home-sales-dropped-2-1-in-may
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