For Fifth Month Straight, Pending Home Sales Slide

In a continuing downtrend, May’s pending home sales slid, declining 2.2 percent for the fifth month in a row (year-over-year), according to the National Association of REALTORS® (NAR) Pending Home Sales Index (PHSI).

Activity decreased 2.5 percent in the Midwest, 4.8 percent in the Northeast and 3.5 percent in the South, but rose 0.6 percent in the West.

NAR May PHS Infographic

“Pending home sales underperformed once again in May, declining for the second straight month and coming in at the second-lowest level over the past year,” says Lawrence Yun, chief economist at NAR. “REALTORS® in most of the country continue to describe their markets as highly competitive and fast-moving, but without enough new and existing inventory for sale, activity has essentially stalled.

“With the cost of buying a home getting more expensive, it’s clear the summer months will be a true test for the housing market,” Yun says. “One encouraging sign has been the increase in new-home construction to a 10-year high. Several would-be buyers this spring were kept out of the market because of supply and affordability constraints. The healthy economy and job market should keep many of them actively looking to buy, and any rise in inventory would certainly help them find a home.”

For more information, please visit www.nar.realtor.

For the latest real estate news and trends, bookmark RISMedia.com.

Related Posts

  1. Pending Home Sales Stumble as Housing Market Momentum Wanes
  2. Existing-Home Sales Strengthen
  3. Existing-home sales slump to a near 3-year low as buyers back out
  4. Home Prices: Boom Continues, but Leveling Out Needed
  5. Appreciation Today Is Mirroring the Pre-Recession Sprint
  6. Home Prices on Long-Term Spell Upward
  7. Case-Shiller: Ease-Off in Home Prices
  8. Economy Expands in May—Where Does Housing Stand?
  9. Case-Shiller: Home Prices Continue Upward Trend

Tags:

Leave a Reply