Pending home sales across the US unexpectedly nosedived in June, as soaring property prices left an increasing number of potential homebuyers out of the real estate market.
The National Association of Realtors’ (NAR) index of pending home sales fell 1.9% last month, despite a consensus among economists polled by Bloomberg calling for an unchanged reading. Compared to year ago levels, the index dropped 3.29%, but still remained above pre-pandemic levels, suggesting that underlying demand for housing still remains robust.
Nonetheless, the latest figures suggest that an increasing number of potential homebuyers are choosing to stay on the sidelines, as the supply of listings remains constrained and asking prices soar to new records. “The moderate slowdown in sales is largely due to the huge spike in home prices,” explained NAR chief economist Lawrence Yun. “Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat.”
Information for this briefing was found via the NAR. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
