Pending home sales reverse course and rise 4.8% in June
June saw a positive swing in pending home sales, with a 4.8% increase in contract activity from May. This was a 2.6% decrease from June 2023, but still provided glimmers of hope for the summer housing market. All four regions saw an increase, according to the Pending Home Sale Index (PHSI) released by the National Association of Realtors® (NAR).
The nationwide PHSI increased to 74.3 in June. An index of 100 is equal to the level of contract activity in 2001. Here’s how the numbers broke out by region:
- Northeast: up 3.0% to 65.5, down 0.3% from June 2023
- Midwest: up 4.7% to 73.7, down 4.2% from June 2023
- South: up 6.3% to 89.3, down 3.9% from June 2023
- West: up 3.4% to 58.4, up 1.0% from June 2023
"The rise in housing inventory is beginning to lead to more contract signings," said NAR Chief Economist Lawrence Yun. "Multiple offers are less intense and buyers are in a more favorable position."
This rise in contract activity shows that more buyers are entering the market. Make sure you're ready to move quickly and stay ahead of the competition. Start by getting pre-approved with PowerBid Approval. It shows sellers and their agents that you’re a serious buyer who can compete with cash offers and close fast.
More homes coming onto the market
More homes tend to list for sale during the warmer months, so it’s not surprising that there’s an increase in housing inventory. More homes for sale is good news for buyers, as it cools the rise in home prices. And even though we’re heading toward the fall when housing inventory tends to fade, there’s still plenty of time for homebuyers to take advantage of this increase in listings.
"Even more inventory is expected to come onto the housing market in the upcoming months ahead of the normal, seasonal declines in the winter," Yun predicts. "The Northeast's small gain in contract signings is due to the ongoing housing shortage situation in that region, leading to stronger home price gains. It is a good time to list."
This is great news for housing inventory, especially for first-time homebuyers struggling to find properties within their budget. To take advantage of the market conditions where you live, work with a local loan officer.
Source: https://www.nar.realtor/newsroom/pending-home-sales-rose-4-8-in-june
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