Unfinished home sales fell 1.8% in July, according to the National Association of Realtors, this is the second consecutive month of recession and signs of a slowdown in the housing market.
On an annualized basis, the number of signings fell 8.5%. Sales are considered deferred if the contract is signed but the transaction is not closed.
“The market may be starting to cool a little, but at the moment there is not enough supply to match the demand from potential buyers,” said Lawrence Yoon, chief economist at NAR. “However, stocks are slowly increasing and home buyers should start seeing more options in the coming months.
“Homes for sale continue to generate a lot of interest, but numerous crazy offers – sometimes double-digit rates per property – have scattered across most regions,” Yoon said. “Even in a somewhat quieter market, a number of potential buyers still choose to forgo evaluations and reviews.”
According to Yoon, 27% of buyers were able to bypass the appraisal as they seek to speed up the process.
Interest rates on mortgages also fell in July, according to Mortgage News Daily, with the average for fixed 30-year mortgages falling from 3.18% to 2.84%. This drop gives buyers more purchasing power, which will help those who buy a home at a higher price.
The sales index varied depending on which region of the country a particular customer lives in. In the Northeast, the unfinished sales index fell 6.6% to 92, down 16.9% from last year. The Midwest saw a 3.3% decline to 104.6 last month.
In the South, sales fell 0.9% MoM and 6.7% YoY. The West was the only region where sales rose 1.9% m / m in July, but declined 5.7% y / y.