by There also was a .8% decline since May, indicating some potential buyers may be skittish about moving despite a high level of inventory of new and existing homes
WASHINGTON — Pending home sales fell 2.8% from June 2024 and .8% from May, the National Association of Realtors reported this week.
Tracking the level of home sales under contract, year-over-year activity fell in the Midwest, Southwest and the West, while remaining flat in the Northeast. Month-over-month activity also declined in the Midwest, South and West, but rose in the Northeast, the NAR said.
The declines occur amid increases in inventory, indicating that many consumers are either hesitant to go through with a purchase or have not been approved or pre-approved for a loan.
Such declines have implications for furniture sales, which are largely tied to people moving into a new or existing home.
However, there was still a 4% and 6% year-over-year increase in homebuyer and seller traffic in June, according to the Realtors Confidence Index.
“The data shows a continuation of small declines in contract signings despite inventory in the market increasing,” said NAR Chief Economist Lawrence Yun. “Pending sales in the Northeast increased incrementally even though home price growth in the region has been the strongest in the country.”
Yun added that the increases in the Realtors Confidence Index “shows early indications of potential contract signings increasing moving forward.”
“Realtors are optimistic that homebuying and selling activity will increase,” Yun said. “That confidence is supported by the fact that mortgage applications have been rising.”
By region, the activity was as follows:
+ In the Northeast, pending home sales were unchanged year-over-year, but rose 2.1% from May.
+ In the Midwest, activity declined .9% from June 2024 and declined .8% from May.
+ In the South, activity declined 2.9% from June 2024 and declined .7% from May.
+ In the West, activity declined 7.3% from June 2024 and declined 3.9% from May.
