Pending Existing Home Sales dropped Unexpectedly

sold-sale-sign-over-clouds-grass-house-14063253The index of pending home sales fell 1.8 percent, the first drop this year, after a revised 0.6 percent increase in May, according to the National Association of Realtors figures shown last Wednesday in Washington.

The Commerce Department figures showed last week that Purchases of new U.S. homes fell also 6.8 percent to a 482,000 annualized pace in June, the weakest since November.

Sandy Flores Broker/Realtor (714)963-7462

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Slowly but Surely!

sold-sale-sign-over-clouds-grass-house-14063253Pending home sales rose less than expected in May but are still at the highest level since 2006.  The National Association of Realtors’ index of pending home sales rose less than expected, by 0.9% to a seasonally-adjusted 112.6. Analysts had expected a 1-1.2% increase.

“The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring,” NAR chief economist Lawrence Yun said.

Last week, the association saw a sharp pickup in existing home sales following a decline in April. Sales of new single-family houses in May 2015 were at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April.

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Are we on our way?

Pending-Home-Sales-IncreaseThe National Association of Realtors (NAR) recently reported that pending home sales increased in April for the fourth consecutive month and reached their highest peak in nine years. The steady gains in contract activity each month this year highlight the fact that buyer demand is strong

“Homeowners looking to sell this spring appear to be in the driver’s seat, as there are more buyers competing for a limited number of homes available for sale,” Lawrence Yun chief economist from NAR.

“The housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers—especially first-time buyers—are able to obtain a mortgage,” Yun adds.

Realtors expect for total existing-home sales in 2015 to be around 5.24 million, an increase of 6.1 percent from 2014. The national median existing-home price for all of this year is expected to increase around 6.7 percent. In 2014, existing-home sales declined 2.9 percent and prices rose 5.7 percent.

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