Despite positive returns in the Northeast, pending home sales down nationwide
The Northeast was the lone bright spot in May’s pending home sales report from the National Association of Realtors® (NAR). The other three other regions reported declines, bringing the nationwide average down 2.7% from the previous month. Year-over-year numbers were down as well 22.2%
“Despite sluggish pending contract signings, the housing market is resilient with approximately three offers for each listing,” said NAR Chief Economist Lawrence Yun, “The lack of housing inventory continues to prevent housing demand from being fully realized.”
Regional breakdown
Three of the four major regions were up from March, and all four were down from April 2022.
- Northeast: up 11.9% to 66.7, down 21.9% from May 2022
- Midwest: down 5.3% to 74.4, down 23.5% from May 2022
- South: down 4.4% to 94.4, down 19.6% from May 2022
- West: down 6.1% to 58.4, down 26.6% from May 2022
“It is encouraging that homebuilders have ramped up production, but the supply from new construction takes time and remains insufficient,” added Yun. “There should be more focus on boosting existing-home inventory with temporary tax incentive measures.”
May’s pending home sales numbers show just how important it use to work with a local lender who understands your local market and can help you finance the purchase of new construction as well. Find an expert loan officer in your area to help you understand how to make the most of what’s happening in your neighborhood.
Source: https://www.nar.realtor/newsroom/pending-home-sales-shrunk-2-7-in-may