After bouncing back in July, pending home sales cooled in August for the third time in four months and to their lowest level since January, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 2.4 percent to 108.5 in August from a downward revised 111.2 in July and is now slightly lower (0.2 percent) than August 2015 (108.7). With last month’s decline, the index is now at its second lowest reading this year after January (105.4).
NAR released a new study that revealed single-family home construction is not keeping pace with job creation and is lacking overall in 80 percent of measured metro areas. When combined with the scant supply levels for existing homes, these tight inventory conditions continue to hamper affordability in many of the largest cities in the country – especially those in the West.
The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes.
“Although buying a home in a strong seller’s market can present lot of challenges, it is possible to secure a place you’ll love” Sandy Flores Broker, Leading your way Home!