Slowdown in pending homes sales signals “turning point” for housing market

Number of homes put under contract dipped 1.9 percent in June as rising prices deter some buyers

National /
Jul.July 29, 2021 03:04 PM
Slowdown in pending homes sales signals “turning point” for housing market
(iStock)

After surging in May, the pace of homes under contract fell 1.9 percent in June — both year-over-year and month-over-month — according to the National Association of Realtors’ monthly index.

Lawrence Yun, NAR’s chief economist, described recent ups and downs in the pending sales index as indicative of a “turning point for the market.”

“Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat,” he said in a statement. “The moderate slowdown in sales is largely due to the huge spike in home prices.”

Home prices broke records for the third consecutive month in May, according to the S&P CoreLogic Case-Shiller index.

By June, the median existing home price was $363,300, up 23 percent over last year and marking the 112 consecutive month of year-over-year price gains, according to NAR.

NAR’s pending home sales index is generally seen as a forward-looking indicator of the pace of existing sales in one or two months’ time, as home sales often take several weeks to close. The dip in June comes after pending home sales jumped 8 percent month-over-month and 13.1 percent year-over-year in May.

Yun said he expects sales activity in the Midwest to remain strong, as the region is the most affordable for buyers.

Pending home sales logged year-over-year gains in both the Midwest and Northeast in June, while contract activity in the South and West regions dropped.






    Related Articles

    arrow_forward_ios
    Tim Cook and the La Quinta house (Getty, Realtor.com / Hideaway Properties Corp.)
    Buyer confirmed, finally: Tim Cook paid $10M for La Quinta mansion
    Buyer confirmed, finally: Tim Cook paid $10M for La Quinta mansion
    $25K grants target low-income homeowners for granny flat construction
    $25K grants target low-income homeowners for granny flat construction
    $25K grants target low-income homeowners for granny flat construction
    ELK Development founder Evan Kasper and renderings of 728 South Manhattan Place (ELK, OFFICEUNTITLED)
    ELK Development plans 2nd Koreatown apartment complex
    ELK Development plans 2nd Koreatown apartment complex
    Bell Partners CEO Jon Bell and Bell Warner Center (Bell Partners, Bell Warner Center)
    Bell Partners buys 394-unit complex in Canoga Park
    Bell Partners buys 394-unit complex in Canoga Park
    340 S. La Fayette Park Place (Rent)
    MC Investment is buyer behind 100-unit Rampart Village complex
    MC Investment is buyer behind 100-unit Rampart Village complex
    Southern California’s housing market undoubtedly cooling (Getty)
    SoCal home sale prices inch down…but they’re still high
    SoCal home sale prices inch down…but they’re still high
    Treehouse co-founders Joe Green and Prophet Walker and with 4421 S. Crenshaw Boulevard (LinkedIn via Walker, Warcus & Millichap, WikiMedia / Tony Maesto)
    Co-living startup Treehouse plans second complex in Los Angeles
    Co-living startup Treehouse plans second complex in Los Angeles
    Fairfield Residential CEO Greg Pinkalla and Madison at Town Center (Fairfield, Marcus and Millichap)
    Apartment giant Fairfield Residential pays $62M for Valencia complex
    Apartment giant Fairfield Residential pays $62M for Valencia complex
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...