The pending home sales measure from the National Association of Realtors has declined further, the third consecutive monthly decline
The pending home sales measure from the National Association of Realtors has declined further, the third consecutive monthly decline.
The index was at 108.5 in May, down 0.8% from a revised 109.4 in April and is 1.7% below its level of a year earlier, the second consecutive annual decline.
"Monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in sales," said NAR chief economist Lawrence Yun. "Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast."
Yun said that the lower price ranges are showing particularly tight supply with sales of homes below $100,000 declining 7.2% in May compared to a year earlier. Homes between $100k and $250k saw a 2% increase.
"The lack of listings in the affordable price range are creating lopsided conditions in many areas where investors and repeat buyers with larger down payments are making up a bulk of the sales activity," said Yun. "Meanwhile, many prospective first-time buyers can't catch a break. Prices are going up and there's intense competition for the homes they're financially able to purchase."
Meanwhile, home sales in the $750k-$1m bracket were up 26% year-over-year and those priced above $1 million saw sales rise 29.1%.
The index was at 108.5 in May, down 0.8% from a revised 109.4 in April and is 1.7% below its level of a year earlier, the second consecutive annual decline.
"Monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in sales," said NAR chief economist Lawrence Yun. "Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast."
Yun said that the lower price ranges are showing particularly tight supply with sales of homes below $100,000 declining 7.2% in May compared to a year earlier. Homes between $100k and $250k saw a 2% increase.
"The lack of listings in the affordable price range are creating lopsided conditions in many areas where investors and repeat buyers with larger down payments are making up a bulk of the sales activity," said Yun. "Meanwhile, many prospective first-time buyers can't catch a break. Prices are going up and there's intense competition for the homes they're financially able to purchase."
Meanwhile, home sales in the $750k-$1m bracket were up 26% year-over-year and those priced above $1 million saw sales rise 29.1%.
