Pending home sales slip in August
Pending home sales fell slightly in August and for the eight-straight month on an annual basis, the National Association of Realtors reported today.
The Pending Home Sales Index (PHSI), which is a forward-looking indicator based on contract signings, decreased 1.8% to 104.2 in August from 106.1 in July. With last month’s decline, contract signings are now down 2.3% year-over-year.
According to Lawrence Yun, NAR chief economist, low inventory continues to contribute to the housing market slowdown.
“Pending home sales continued a slow drip downward, with the fourth month over month decline in the past five months,” Yun said.
The PHSI in the Northeast dropped 1.3% to 92.7 in August, and is now 1.6% below a year ago. In the Midwest, the index slid back 0.5% to 101.6 in August and is also 1.1% lower than August 2017.
Pending home sales in the South dipped 0.7% to an index of 121.3 in August, however, that number is 1.3% higher than a year ago. The index in the West decreased 5.9% in August to 89.1 and plummeted 11.3% below a year ago.
“The greatest decline occurred in the West region where prices have shot up significantly, which clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points,” Yun said.
According to the third quarter Housing Opportunities and Market Experience (HOME) survey, a record high number of Americans believe now is a good time to sell. “Just a couple of years ago about 55% of consumers indicated it was a good time to sell; that figure has climbed close to 77% today.”
With home prices rising, many homeowners have decided to wait to sell their home in hopes of seeing additional gains and equity, however.
But Yun says indicators show that potential buyers are pulling out of the market while price gains are slowing down. At the same time, potential sellers are considering that now is a good time to list and bring more properties to the market.
Columbus, Ohio, Seattle-Tacoma-Bellevue, Wash., San Diego-Carlsbad, Calif., Providence-Warwick, R.I.-Mass. and Nashville, Tenn. saw the largest increase in active listings in August compared to a year ago.
Yun expects existing-home sales this year to decrease 1.6% to 5.46 million, and the national median existing-home price to increase 4.8%. Looking ahead to next year, existing sales are forecast to rise 2% and home prices around 3.5%.
The Pending Home Sales Index (PHSI), which is a forward-looking indicator based on contract signings, decreased 1.8% to 104.2 in August from 106.1 in July. With last month’s decline, contract signings are now down 2.3% year-over-year.
According to Lawrence Yun, NAR chief economist, low inventory continues to contribute to the housing market slowdown.
“Pending home sales continued a slow drip downward, with the fourth month over month decline in the past five months,” Yun said.
The PHSI in the Northeast dropped 1.3% to 92.7 in August, and is now 1.6% below a year ago. In the Midwest, the index slid back 0.5% to 101.6 in August and is also 1.1% lower than August 2017.
Pending home sales in the South dipped 0.7% to an index of 121.3 in August, however, that number is 1.3% higher than a year ago. The index in the West decreased 5.9% in August to 89.1 and plummeted 11.3% below a year ago.
“The greatest decline occurred in the West region where prices have shot up significantly, which clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points,” Yun said.
According to the third quarter Housing Opportunities and Market Experience (HOME) survey, a record high number of Americans believe now is a good time to sell. “Just a couple of years ago about 55% of consumers indicated it was a good time to sell; that figure has climbed close to 77% today.”
With home prices rising, many homeowners have decided to wait to sell their home in hopes of seeing additional gains and equity, however.
But Yun says indicators show that potential buyers are pulling out of the market while price gains are slowing down. At the same time, potential sellers are considering that now is a good time to list and bring more properties to the market.
Columbus, Ohio, Seattle-Tacoma-Bellevue, Wash., San Diego-Carlsbad, Calif., Providence-Warwick, R.I.-Mass. and Nashville, Tenn. saw the largest increase in active listings in August compared to a year ago.
Yun expects existing-home sales this year to decrease 1.6% to 5.46 million, and the national median existing-home price to increase 4.8%. Looking ahead to next year, existing sales are forecast to rise 2% and home prices around 3.5%.