The National Association of Realtors® announced yesterday that the number of homes going under contract for sale declined in June for the first time in three months. NAR’s chief economist asserted he is “not worried” about this result after the three good months that preceded this decline. See the full interview on You Tube.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 1.1 percent to 102.7 in June from 103.8 in May, and is 7.3 percent below June 2013 (110.8). Despite June’s decrease, the index is above 100 – considered an average level of contract activity – for the second consecutive month after failing to reach the mark since November 2013 (100.7).
According to Yun, “The good news is that price appreciation has decreased to its slowest pace since March 2012 behind much needed increases in inventory,” he said. That’s good news, because he sees lower prices causing in increase in sales volume in the second half of 2014.