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Pending Real Estate Sales

The National Association of Realtors released the Pending Home Sales Index yesterday and it showed the first year-over-year decline in almost 2 years.  It also showed that it was not isolated to any particular region of the United States as all four major regions showed declines.  The Pending Home Sales Index is used to predict help predict housing demand by portraying the number of people currently trying to buy homes.  This latest decline after a downward revision from April’s index may look at first glance that buyers are not out there, but homes are selling faster now than they were this time last year like the housing market.  This just shows that the rest of the country is experiencing to some degree what all of us in the Austin, TX area already know.

  Real Estate InventoryBluebonnets-Taylor-Texas

The inventory of houses to purchase is extremely low and prices keeping going up, and this is most likely the reason for the decrease in pending contracts.  Pending home sales in the South declined 3.1 percent to an index of 126.6 in May but are still 0.6 percent higher than last May.  Texas has one of the lowest unemployment rates in the country which is contributing to the large number of poeple moving to Texas and the Austin area in particular.  Lawrence Yun, National Association of Realtor chief economist, is quoted as saying “With demand holding firm this spring and homes selling even faster than a year ago1, the notable increase in closings in recent months took a dent out of what was available for sale in May and ultimately dragged down contract activity,” he said. “Realtors® are acknowledging with increasing frequency lately that buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market.”

The full article is available at http://www.realtor.org/news-releases/2016/06/pending-home-sales-skid-in-may