Pending home sales bounced back in June following three months of decline according to the National Association of Realtors
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Pending home sales bounced back in June following three months of decline according to the National Association of Realtors.
Its Pending Home Sales Index gained 1.5% to 110.2 in June. The May index was revised upwards 108.6. The annual 0.5% gain was the first increased since March.
Three of the major regions saw increased activity with the Midwest the exception.
"The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs," sais NAR chief economist Lawrence Yun. "Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria."
With supply running at more than 7% below that of a year earlier, but Yun says the tight conditions may actually help first time buyers as there are signs that investors are stepping out of the market.
The share of homes sold to investors in June was 13%, the lowest of the year so far, while the proportion of cash buyers fell to its lowest since June 2009 (13%).
"Fewer investors paying in cash is good news as it could mean a little less competition for the homes first-time buyers can afford. However, the home search will still likely be a strenuous undertaking in coming months because supply shortages in most areas are most severe at the lower end of the market," added Yun.
Its Pending Home Sales Index gained 1.5% to 110.2 in June. The May index was revised upwards 108.6. The annual 0.5% gain was the first increased since March.
Three of the major regions saw increased activity with the Midwest the exception.
"The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs," sais NAR chief economist Lawrence Yun. "Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria."
With supply running at more than 7% below that of a year earlier, but Yun says the tight conditions may actually help first time buyers as there are signs that investors are stepping out of the market.
The share of homes sold to investors in June was 13%, the lowest of the year so far, while the proportion of cash buyers fell to its lowest since June 2009 (13%).
"Fewer investors paying in cash is good news as it could mean a little less competition for the homes first-time buyers can afford. However, the home search will still likely be a strenuous undertaking in coming months because supply shortages in most areas are most severe at the lower end of the market," added Yun.
