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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