Pending home sales were down by 2.1% in May from April, according to new data from the National Association of Realtors (NAR). Year-over-year, pending sales were down by 6.6%.
Last month, NAR’s Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – decreased to 70.8 in May. An index of 100 is equal to the level of contract activity in 2001.
Regionally, the PHSI for the Northeast and the West were up from the previous month, while all the regional indexes were down year-over-year.
“The market is at an interesting point with rising inventory and lower demand,” said NAR Chief Economist Lawrence Yun. “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.”
Drop those prices!!!! 35% price drop so we can help the median household incomes actually be able to afford homes where they live.