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| Pending Home Sales |
David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, stated "The home price increases reflect the low unemployment rate, low mortgage interest rates, and consumers' generally positive outlook. However, the outlook is not without a lot of uncertainty and some risk. Last week's vote by Great Britain to leave the European Union is the most recent political concern while the U.S. elections in the fall raise uncertainty and will distract home buyers and investors in the coming months.”
The National Association of
Realtors (NAR) reported fewer Americans signed contracts to buy homes in May
resulting in home sales sliding lower year-over-year for the first time in
nearly two years. The NAR’s seasonally adjusted Pending Home Sales Index
fell 3.7% in May to 110.8, just below its May 2015 reading of 111.
Although overall home sales have
steadily improved over the past year, buyers are running into shrinking
inventories that are causing homes to sell after fewer days on the market while
pushing up prices and this may have reduced pending sales during May.
May's decline implies completed home sales could slow in July or August as the
number of listings fell 5.7% from a year ago suggesting prospective homebuyers
have limited choices. Meanwhile, the median sales price has risen 4.7% over
the past 12 months to $239,700.
