Pending Home Sales Slump For 6th Straight Month As "Affordability Constrains Would-Be Buyers"

After disappointment for new- and existing-home sales (as well as starts and permits), pending-home-sales managed to rebound from May's drop, rising a better than expected 0.9% MoM.

The month-over-month gain in contract signings was broad-based with all four major U.S. regions showing gains. Meantime, Portland, Oregon, Seattle and San Jose, California, were among several cities showing big increases in new listings, according to the NAR. While the pickup in inventory is welcome and could help bring down prices, the group says more supply is needed to meet demand.

However, pending home sales fell 2.5% YoY - the 6th straight month of declines. (down 4./0% on a NSA basis)...

“The positive forces of faster economic growth and steady hiring are being met by the negative forces of higher home prices and mortgage rates,” Lawrence Yun, NAR’s chief economist, said in a statement.

“Even with slightly more homeowners putting their home on the market, inventory is still subpar and not meeting demand. As a result, affordability constraints are pricing out some would-be buyers and keeping overall sales activity below last year’s pace.”

As a reminder, economists consider pending sales a leading indicator because they track contract signings. Purchases of existing homes are tabulated when a deal closes, typically a month or two later.

Comments

Free This MuffDiver69 Mon, 07/30/2018 - 10:17 Permalink

Depends on where one lives...no slump in my neck of the woods!!!

I don't necessarily agree with this article! Maybe I am wrong, but residential housing will always be a good investment, so will dirt, that is NOT to say prices will never go down...2008 proved that to be the myth that it was.

In reply to by MuffDiver69

marcel tjoeng Mon, 07/30/2018 - 10:12 Permalink

 

Lawrence Yun, NAR’s chief economist,

affordability constraints are pricing out some would-be buyers

?

now that is a dumb twat.

Must be an economist, what.

 

 

 

 

0valueleft Mon, 07/30/2018 - 10:16 Permalink

The blue wave will not be an exercise purely in voting, it will be blue folks moving to affordable red states and cutting the branch they're sitting on. Defend your borders. 

soksniffer Mon, 07/30/2018 - 10:37 Permalink

The house I'm going to make an offer on today already had two offers when it came to market two days ago, and I'm sure has others after yesterday's open house. That said, I've looked at others in this general vicinity that have been listed for over a month. This one's a nice house on a great lot; the others are merely ok houses on mediocre lots... what's that mantra again? Something along the lines of "location, location..." I forget the last part.

nicktd clade7 Mon, 07/30/2018 - 14:16 Permalink

Sold out in May! Between ever rising property taxes, ever rising home insurance, fighting wood ants and repairing large wood deck, replacing hail damage roof, dick neighbors trying to block raining water draining into their backyards (trying to sneek into my backyard blocking my gutters. walking around in yard with carry put a stop to that), A/C hvac issues, maintaining oaks...etc etc etc. Renting is bliss!!!

In reply to by clade7

Moving and Grooving Mon, 07/30/2018 - 10:59 Permalink

I guess whenever the progressive left is done with their current project, invalidating the 2016 POTUS election, they can start killing off all those greedy retired people and moving in to their houses. Redistribution!

 

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Pernicious Gol… Mon, 07/30/2018 - 11:05 Permalink

Maybe I SHOULD sell my house to that guy who sent me a postcard saying he would buy it for cash, as-is. Maybe if I'm lucky he'll let me take his flipping houses seminar instead of paying me the cash.

homiegot Mon, 07/30/2018 - 12:11 Permalink

People can't afford a house because they spend any extra money on useless shit like Starbucks ans smartphones. Most people couldn't manage their way out of a paper bag.

SergeA.Storms Mon, 07/30/2018 - 21:41 Permalink

Gotta live somewhere.  Bought my place in 2012, have gained $120k in equity (hahahahahaha I know, right?), have no intention of selling, ever.  Live within your means and these bubbles don’t mean so much.  Affordable house, affordable cars, a side business (or two), doing a-ok.  Plan your work and work your plan.