Is The Housing Market Transitioning?
National Association of Realtors – Pending Home Sales Edge Higher 0.7% in May
On June 27, 2022, the National Association of Realtors (NAR) released some interesting findings with regard to pending home sales as they edged up a bit in May. A slight creep which occurred were mixed in different regions. Dose this mean the Housing Market is transitioning?
What does this actually mean?
According to economists, in particular, NAR Chief Economist Lawrence Yun believes the market is “undergoing a transition”. He stated the reason for this is due to increasing mortgage rates. Some other highlights to note:
- Pending home sales broke a six-month skid with a slight rise of 0.7% from April.
- Pending sales in the Northeast accelerated 15.4% in May, the largest monthly increase among the four major U.S. regions.
- Compared to a year ago, three out of four regions – Northeast, South, and West – posted double-digit pending sales declines, while sales dropped by 8.8% in the Midwest.
May Pending Home Sales Regional Breakdown
The Northeast PHSI jumped 15.4% compared to last month to 86.7, down 11.9% from May 2021. The Midwest index retreated 1.7% to 98.6 in May, a decline of 8.8% from a year ago.
The South PHSI increased 0.2% to 119.0 in May, a 13.8% drop from the previous year. The West index contracted 5.0% in May to 81.6, down 19.8% from May 2021.
The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
He says further, the better way to balance the market would be through increasing inventory and supply. Not only would this help the housing market, it would also improve the chances for potential home buyers. Furthermore, the overall economy would likely receive benefits. You can read the full article here.
Do you have questions about the local market? Have you noticed market trends or pending home sales edge up a bit in your area? Perhaps you are wondering or needing some questions regarding your own real estate needs. Maybe you are thinking of buying and selling, yet are unsure what your best options would be. You can contact me at any time and I’d be happy to help.
Until next time,
Your friend and Realtor®,
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