Pending U.S. home sales slipped last month as prices remained high and supply continued to dry out.
Home contract signings fell in November after rising in the previous month, according to the latest report from the National Association of Realtors.
The month-over-month decline was seen in every region of the U.S. The Midwest had the biggest decrease, with contracts falling 6.3 percent from October. Still, the region was the only one where more deals were signed than were inked a year ago, although the increase was just 0.2 percent.
The dip can be attributed in part to low housing supply and hesitation surrounding home prices, said NAR chief economist Lawrence Yun. Delays caused by the omicron variant could stall the market as buyers and sellers become sidelined and construction is delayed, Yun added. More than 19 percent of New Yorkers’ Covid tests Tuesday came back positive.
“While I expect neither a price reduction nor another year of record-pace price gains, the market will see more inventory in 2022 and that will help some consumers with affordability,” Yun said.
Despite the drop in contracts, demand for homes remained high. These days, it takes roughly 18 days for homes to go into contract after being listed, Yun said.
“Buyer competition alone is unrelenting, but home seekers have also had to contend with the negative impacts of supply chain disruptions and labor shortages this year,” Yun said.
The Massachusetts Association of REALTORS® (MAR) reported today that the number of single-family homes put under agreement in June were down 16.0 percent over the same time last year, while condominiums were down 21.0 percent. This is the second month in a row that the number of both single-family homes and condominiums put under agreement has decreased compared to the year before.
From the MAR:
“June is following the same script as May with pending sales down after the expiration of the tax credit,” said 2010 MAR President Kevin Sears, broker/co-owner of Sears Real Estate in Springfield. “While we can anticipate the number of closed sales in June going up, the summer months will give us a better understanding of where the market is and whether affordable prices and interest rates below the five-percent range will keep the market moving along.”
The number of single-family homes put under agreement in June was down 16.0 percent compared to the same time last year (5,153 homes in 2009 to 4,354 homes in 2010). On a month-to-month basis, single-family homes put under agreement were down 6.6 percent from 4,663 homes in May.
The number of condos put under agreement in June was down 21.0 percent compared to June 2009 (2,127 units in 2009 to 1,689 units in 2010). On a month-to-month basis, condos put under agreement were down 10.8 percent from 1,894 units in May.
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