Jun
29
Pending Sales of Existing Homes in U.S. Fall More Than Forecast
ByContracts to purchase previously owned U.S. homes fell more than projected in May, a sign demand cooled after a robust start to the busiest selling season of the year, figures from the National Association of Realtors showed Wednesday in Washington.
Key Points
- Index of pending home resales fell 3.7 percent (forecast was 1.1 percent drop), the most in six years, after a revised 3.9 percent increase in April
- Measure rose 2.4 percent from May 2015 on an unadjusted basis (forecast was gain of 4.6 percent)
- Pending sales declined in all four regions, including a 4.2 percent drop in the Midwest index to the lowest level since January
- Sales gauge declined to 110.8 on a seasonally adjusted basis, with 100 indicating “historically healthy” buying activity, according to NAR
Big Picture
Home price appreciation and a limited supply of available properties are bridling sales, while first-time buyers or Americans with lower incomes and poor credit are finding it difficult to qualify for financing. A potential loss of momentum in housing would trigger concern at a time when growth is restrained by weak business investment and U.S. exports…
Pending Sales of Existing Homes in U.S. Fall More Than Forecast
