Aug 10, 2017
The numbers are in for June but the story they tell is a complicated one. Weakening figures for existing home sales are giving realtors fits of melancholy but pending home sales may portend a stronger market in the near future.
The National Association of Realtors (NAR) said the latter number bumped up by 1.5 percent. That’s in contrast to existing home numbers where inventory levels at historic lows have dampened the ardor of buyers in a flood of rising prices and diminished selection. Housing stock has slackened by more than seven percent since June of last year. The pressure has been even more acute for home-flippers since investors need to watch the bottom line. Just 13 percent of the month’s sales were to investors, the lowest June figure seen in eight years.
Oddly, the Midwest continues to be an outlier. It was the sole region not to see growth in pending home sales.
Quoted on Realtormag.com, NAR’s chief economist Lawrence Yun said a dearth of investors could boost the fortunes of first-time homebuyers looking for a starter property.
“However, the home search will still likely be a strenuous undertaking in coming months because supply shortages in most areas are most severe at the lower end of the market,” he noted.
Those finding the perfect house at the perfect price must strike while the iron is hot.
“Market conditions in many areas continue to be fast-paced with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria,” Yun concluded.