Portland, Oregon 2021-08-04 09:09:07 –
(TheRealDeal) – According to the National Association of Real Estate Agents Monthly Index, the pace of contract housing in June fell 1.9% year-on-year and monthly after a surge in May.
Lawrence Yun, Chief Economist at NAR, described the recent rise and fall of the pending sales index as a “market turning point.”
“Buyers are still interested and want to own a home, but record high home prices are pushing some homes back,” he said in a statement. “The gradual slowdown in sales is primarily due to the sharp rise in home prices.”
House prices set a new record in May for the third straight month, according to S & P. CoreLogic Case Shiller Index..
By June, median existing home prices were $ 363,300, up 23% from last year and the 112th consecutive month of year-on-year growth, according to the NAR.
The NAR’s pending home sales index is generally considered a positive indicator of the pace of existing sales for a month or two, as it often takes weeks to complete home sales. The June decline came after pending home sales surged 8% month-on-month and 13.1% year-on-year in May.
Yun said he expects sales activity in the Midwest to remain strong, as the Midwest is the most affordable price for buyers.
Pending home sales recorded year-over-year growth in both the Midwest and Northeast in June, but contract activity in the South and West regions declined.
Housing market nearing ‘turning point’ as high prices turn buyers off Source link Housing market nearing ‘turning point’ as high prices turn buyers off