Pending home sales dip with supply shortages, flat wages

Pending home sales in the US declined 1.1 percent in June, according to the National Association of Realtors. There are conditions that deter potential buyers, such as a shortage of homes in parts of the country.

|
SoldAtTheTop
This chart shows the trend in national pending home sales in the last decade. Pending home sales in the US declined 1.1 percent in June, according to the National Association of Realtors.

The National Association of Realtors (NAR) released their Pending Home Sales Report for June showing that pending home sales declined with the seasonally adjusted national index falling 1.1 percent from May and dropping 7.3 percent below the level seen in June 2013. 

Meanwhile, the NARs chief economist Lawrence Yun indicated that while current activity has improved overall, conditions are still challenging for potential home buyers.

"Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved, ... However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates."

The following chart shows the seasonally adjusted national pending home sales index along with the percent change on a year-over-year basis as well as the percent change from the peak set in 2005 (click for larger version).

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.
QR Code to Pending home sales dip with supply shortages, flat wages
Read this article in
https://www.csmonitor.com/Business/Paper-Economy/2014/0729/Pending-home-sales-dip-with-supply-shortages-flat-wages
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe