Pending home sales in July declined by 2.3% month-over-month and 2.2% year-over-year, according to the National Association of Realtors (NAR). Last month’s sales total was the lowest level since January.
Regionally, month-over-month pending home sales declined across the four major regions. On a year-over-year measurement, pending home sales increased in the Midwest but declined in the Northeast, South and West.
Among the 50 largest metro areas, the biggest annual increases in pending home sales were recorded in Virginia Beach (+17.2%), San Antonio (+11.8%), Cincinnati (+6.2%), Pittsburgh (+3.7%), and Miami-Fort Lauderdale-West Palm Beach (+2.4%).
“The highest mortgage rates of the year hit right in the middle of summer, and that’s pulling back contract signings,” said NAR Chief Economist Lawrence Yun. “Home prices are at record highs so houses for sale are sitting on the market longer, and fewer buyers are bidding above the asking price than a year ago, though there are large local market variations.”
“Job gains should bring more buyers into the market, especially if mortgage rates stabilize or decline, though that impact takes time to show up,” Yun added. “Right now, pending contracts are 30% below their pre-pandemic 2019 level, while payroll employment is 5% above. That gap points to sizable pent-up demand that should be unleashed in the coming years as more supply reaches the market and affordability improves.”
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