According to the National Association of Realtors (NAR), pending sales of existing homes, as measured by signed contracts, decreased by 1.9% from May to June. This is most likely a result of home prices increasing 17% in May from the previous year, which was the largest gain on record. Lawrence Yun, NAR’s chief economist, stated “pending home sales have seesawed since January, indicating a turning point for the market. Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat.”
We have seen home prices rise consistently month over month, tied directly to strong buyer demand, lack of inventory, and record low interest rates. However, while interest rates continue to be near their record lows, inventory is beginning to increase. The number of newly listed homes in June, rose 5.5% compared with June of 2020. Home sellers are recognizing the buyer demand and are looking to capitalize by listing their homes for sale. As the increase in inventory begins to meet buyer demand, the results may finally shift in the favor of the homebuyer, as home prices should begin to stabilize or retreat lower.
Call your Advisors Mortgage Loan Officer today to discuss the current market in more detail and to learn what you qualify for.
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