Pending home sales sank during July, according to new data from the National Association of Realtors (NAR).
The Pending Home Sales Index (PHSI), NAR’s a forward-looking indicator of home sales based on contract signings, dropped by 5.5% to 70.2 in July, the lowest reading since the index began tracking in 2001. Year-over-year, pending transactions were down 8.5%. An index of 100 is equal to the level of contract activity in 2001.
“A sales recovery did not occur in midsummer,” said NAR Chief Economist Lawrence Yun. “The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election.”
On a regional basis, all for indices were down month-over-month and only the Northeast PHSI recorded a year-over-year uptick, with a 2.4% rise from July 2023.
“In terms of home sales and prices, the New England region has performed relatively better than other regions in recent months,” added Yun. “Current lower, falling mortgage rates will no doubt bring buyers into market.”
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