Weekly Real Estate News
Pending home sales during May were up by 1.8% from April and up 1.1% from one year earlier, according to the National Association of Realtors (NAR).
All four regions experienced month-over-month increases while contract signings were up year-over-year only in the Midwest and South – the Northeast and West reported declines during that period.
“Consistent job gains and rising wages are modestly helping the housing market,” said NAR Chief Economist Lawrence Yun. “Hourly wages are increasing faster than home prices. However, mortgage rate fluctuations are the primary driver of homebuying decisions and impact housing affordability more than wage gains.”
Yun added, “The Northeast’s housing shortage is boosting home prices, with more than a quarter of homes selling above list price. Conversely, more inventory in the South gives home buyers greater negotiation power. Price declines in the South should be considered temporary given the region’s strong job creation.”
