July 2023 Saw Rising Home Sales
According to the National Association of Realtors (NAR), US pending home sales rose 0.9% for the second month in a row. This does come as a surprise due to the elevated home prices and rising mortgage rates. This still was lower than a year ago, as the year-over-year pending transactions dropped by 14%.
“The small gain in contract signings shows the potential for further increases in light of the fact that many people have lost out on multiple home-buying offers. Jobs are being added, thereby enlarging the pool of prospective home buyers. However, rising mortgage rates and limited inventory have temporarily hindered the possibility of buying for many,” said Lawrence Yun with NAR.
Pending home sales and contract signs for a new construction still top the existing home sale by about one to two months. There was an increase though in existing home sales in July. “But, unlike the market for new homes, which has received convincingly above last year’s lows, pending home sales continue to lag behind year-ago levels. This means more of the same is ahead for existing home sales, which have bounced back only modestly,” said Danielle Hale of Realtor.com.
“Today’s data suggests that home sales activity is unlikely to see a strong pick up in the next few months as limited options and significant affordability headwinds weigh on buyers,” says Hale.
