Pending Home Sales Rose 4.8% in June
31 Julio 2024 - 9:00AM
Key Highlights
- Pending home sales
intensified 4.8% in June.
- Month over month,
contract signings increased in all four U.S. regions.
- Compared to one year
ago, pending home sales declined in the Northeast, Midwest and
South, but improved in the West.
Pending home sales in June ascended 4.8%, according to
the National Association of Realtors®. All four U.S. regions
posted monthly gains in transactions. Year-over-year, the
Northeast, Midwest and South registered declines, while the West
increased.
The Pending Home Sales Index (PHSI)* – a
forward-looking indicator of home sales based on contract signings
– grew to 74.3 in June. Year over year, pending transactions were
down 2.6%. An index of 100 is equal to the level of contract
activity in 2001.
“The rise in housing inventory is beginning to lead to more
contract signings,” said NAR Chief Economist Lawrence Yun.
“Multiple offers are less intense, and buyers are in a more
favorable position.”
Pending Home Sales Regional BreakdownThe Northeast PHSI
ascended 3.0% from last month to 65.5, a decline of 0.3% from June
2023. The Midwest index rose 4.7% to 73.7 in June, down 4.2% from
one year ago.
The South PHSI increased 6.3% to 89.3 in June, dropping 3.9%
from the prior year. The West index climbed 3.4% in June to 58.4,
up 1.0% from June 2023.
“Even more inventory is expected to come onto the housing market
in the upcoming months ahead of the normal, seasonal declines in
the winter,” added Yun. “The Northeast’s small gain in contract
signings is due to the ongoing housing shortage situation in that
region, leading to stronger home price gains. It is a good time to
list.”
About the National Association of Realtors®The
National Association of Realtors® is America’s largest trade
association, representing 1.5 million members involved in all
aspects of the residential and commercial real estate industries.
The term Realtor® is a registered collective membership mark that
identifies a real estate professional who is a member of the
National Association of Realtors® and subscribes to its
strict Code of Ethics.
# # #
*The Pending Home Sales Index is a leading indicator for the
housing sector, based on pending sales of existing homes. A sale is
listed as pending when the contract has been signed but the
transaction has not closed, though the sale usually is finalized
within one or two months of signing.
Pending contracts are good early indicators of upcoming sales
closings. However, the amount of time between pending contracts and
completed sales is not identical for all home sales. Variations in
the length of the process from pending contract to closed sale can
be caused by issues such as buyer difficulties with obtaining
mortgage financing, home inspection problems, or appraisal
issues.
The index is based on a sample that covers about 40% of multiple
listing service data each month. In developing the model for the
index, it was demonstrated that the level of monthly sales-contract
activity parallels the level of closed existing-home sales in the
following two months.
An index of 100 is equal to the average level of contract
activity during 2001, which was the first year to be examined. By
coincidence, the volume of existing-home sales in 2001 fell within
the range of 5.0 to 5.5 million, which is considered normal for the
current U.S.
population.
NOTE: Existing-Home Sales for July will be released August
22. The next Pending Home Sales Index will be released August 22.
All release times are 10 a.m. Eastern. View the NAR Statistical
News Release Schedule.
Information about NAR is available at
nar.realtor. This and other news releases are posted in
the newsroom at nar.realtor/lywsroom.
Statistical data in this release, as well as other tables and
surveys, are posted in the “Research and Statistics” tab.
- Pending Home Sales: June 2024
Lauren Cozzi
National Association of REALTORS®
202/383-1178
media@realtors.org