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Not enough homes for sale?

By Polyana da Costa · Bankrate.com
Thursday, July 26, 2012
Posted: 4 pm ET

Fewer buyers signed contracts to buy homes in June. Will that dampen the optimism of those celebrating the housing rebound? Not yet.

The National Association of Realtors' pending home sales index slipped 1.4 percent to 99.3 in June. But it wasn't because of a lack of buyers, says NAR's chief economist, Lawrence Yun. It was because there weren't enough homes for sale on the market. I know this notion probably feels like a slap in the face to home sellers across the country, especially those who have been trying to sell their homes for months.

But when buyers have fewer options, there are fewer deals, NAR says.

"Buyer interest remains strong but fewer home listings mean fewer contract signing opportunities," Yun says. "We’ve been seeing a steady decline in the level of housing inventory, which is most pronounced in the lower price ranges popular with first-time buyers and investors."

Even though pending sales slowed in June, the situation is much better than last year. June marks 14 consecutive months of year-over-year gains for the monthly index.

And since real estate is local, here is how each region fared:

June pending home sales index:

Northeast: fell 7.6 percent
South: fell 2 percent
Midwest: fell 0.4 percent
West: rose 2 percent

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27 Comments
Greg
July 31, 2012 at 11:25 am

BS, this is a nonsense article to sell space, the current market is for more wealthy entrepeneurs to buy up more distressed properties, and sit on them. The back side of this is going to make a ton of wealthier people in a couple of decades. Stop trying to BS the normal folks with stupid articles like this.

ladybegood
July 31, 2012 at 11:20 am

you can blame the housing debacle on many reasons, but the government is the culprit that was behind giving every one a home if they qualified or not for a loan. they told the banks not to worry for the tax payers will be there to bail you out of bad loans.....and having that massachusetts congressman frank help complete the sinking of the american houseing market. we reap of what we sow.

ladybegood
July 31, 2012 at 11:07 am

politicians, lawyers, real estate agents, car salesman, what do they have in common?

First Name
July 31, 2012 at 10:51 am

Here's the reality, there are a TON of underwater houses, the problem is that they are stuck in the foreclosure process. I purchased a foreclosure and it took me 9 months to close. Banks do not want to lend to purchase a foreclosure. I would wait 24 months, the market will be saturated, and people will be angry.

Jeff
July 31, 2012 at 10:35 am

I have seen in my neighborhood people renting out their homes then buying another. They did not want to loose their shirts on their current home. And hoping the market will turn and they can gain equity in their new home to offset the loss they will take when they sell the other home.

D.stockton
July 31, 2012 at 3:44 am

As a real estate pro recently told me, Bank owned homes are purposely being hidden from the market. So, Dear Frustrated, find the websites that truly list foreclosed homes and you will be able to find the home of your dreams.

CyberianFox
July 31, 2012 at 12:17 am

This article is a load BS! Joseph I could not have said it better! Everything that you stated is so correct and on the money! Homes used to be a place to raise your family and have a sense of community. Just look at all these TV shows..."your house is now worth blah blah blah." America wake up and stop using your home as an ATM machine! Too bad developers!!! We need to sell the homes that are on the market now...not build more cheap McMansions!

Joseph
July 30, 2012 at 11:57 pm

This story is the biggest BULL I have read. There are scores of homes available for sale everywhere you go.
AND don't these people realize We have computers? Ever see the THOUSANDS of Homes available for sale - in every State of the Union?!
This is just another load of nonsense to have developers push their way into your Town to bulldoze more of the landscape you enjoy every day. In Pa. where it is said the Country here is so beautiful - developers are clearing so many beautiful landscapes to put up their CHEAP stick homes.

Housing rebound??? Homes are supposed to be as they were for decades - a place to live; raise a family and have memories of your life NOT be a money machine! Home prices were artificially inflated by unscrupulous Folk causing one of the American Dreams to be an American Nightmare!
We were supposed to - in our later years - be able to 'downsize' from our larger homes BUT because of those manipulators...Folks want way too much for their little castles. The Agents are a part of this grief - desperate for their commissions!

The most important FACT is: the baby boomer's are elderly. They own homes - as they die off their homes will SATURATE the market! As I have heard it...their Children have their own homes - with many saying they do not want to live in their parents homes - so guess what Folks there will be tens of thousands of homes continuously available for the next 25 years.

Aloisios
July 30, 2012 at 11:35 pm

Appraisals and assessments still falling nationwide. Every town neighborhood with empty houses. Homes valued below 1995 levels. The NAR says they need MORE houses in the market place. These are the same people that were double counting home sales for a year and half during 2009-2010.
The real problem is not a lack of willing buyers, it's a lack of down payments and unwilling banks that are still hoarding cash.

Frustrated
July 26, 2012 at 5:50 pm

We sold in May and still haven't bought a house yet, and not for lack of trying! Bidding wars against cash buyers is wearing us down! Home sellers haven't figured out you need to lower your price below fmv...buyers want to see the possibility of some equity. So those of us buying in the lower price bracket are trying to grab the foreclosures that are left. Cash investors take the cake every time. Sure hope we find something before summer's end!