The number of signed contracts to buy homes fell 1.8 percent in August and are now down 2.3 percent year-over-year. The data, from the National Association of Realtors’ most recent Pending Home Sales Index, shows slower activity from buyers at the end of the summer sales season. However, a closer look at the numbers reveals that most of the decline was in the West, where affordability is more of a concern for buyers. For example, pending sales – which are a good indication of future home sales, since they count signings and not closings – were virtually unchanged in the Midwest, Northeast, and South, but down nearly 6 percent in the West. Still, despite the overall decline, there was some good news in the report. For example, some of the largest increases in active listings were found in markets where additional inventory would help moderate rising prices, like the Seattle-Tacoma-Bellevue area and San Diego-Carlsbad. Additionally, NAR chief economist, Lawrence Yun, says he expects next year to be more favorable for buyers. In fact, he is forecasting a 2 percent increase in sales of previously owned homes and only a 3.5 percent increase in home prices, which is an improvement compared to this year’s nearly 5 percent gain. More here.
Archive for October 2018
More Americans Think Now’s The Time To Sell
Nearly 80% of Americans say now is a good time to sell a house, according to a recent survey from the National Association of Realtors. This may be good news for buyers. These days, there are more home buyers than there are homes for sale, which is the primary factor causing prices to rise. But rising prices have also caused homeowners to think about the benefits of selling their home. And, if the results of the NAR’s Housing Opportunities and Market Experience survey are any indication, a growing number of them are beginning to consider putting their home on the market. If so, it’ll help provide additional choices for home buyers while also slowing the rate at which prices move upward. Lawrence Yun, NAR’s chief economist, says he believes American homeowners were waiting to see if the gains got any better before making a decision. “With prices having risen so quickly, many consumers were deciding to wait to list their homes hoping to see additional price and equity gains,” Yun said. “However, with indications that buyers are beginning to pull out, price gains are going to decelerate and potential sellers are considering that now is a good time to list and bring more properties to the market.” More here.
