After five consecutive months of increases, pending home sales slipped in June according to the National Association of Realtors®. Still, June’s sales remained near May’s level, which was the highest in over nine years, Modest gains in the Northeast and West were offset by larger declines in the Midwest and South.
The Pending Home Sales Index is a forward-looking indicator based on home sale contract signings. The dip of 1.8 percent from May to June still puts the PHSI 8.2 percent above June 2014. Despite last month’s decline, the index is the third highest reading of 2015 and has now increased year-over-year for ten consecutive months.
Lawrence Yun, NAR chief economist, says “Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level. The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.”
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