The inventory of existing homes for sale crept slightly higher last month, though the month-over-month increase was more substantial in the Northeast.
The
seasonally adjusted Pending Home Sales Index, a prospective indication of pending home sales that reflects contract signings, was 111.0 in June.
Pending U.S. home sales
moved modestly higher compared to one month previous, when the seasonally adjusted index came in at a level of 110.8.
It was also better than one year previous, a month that saw a downwardly revised index level of 109.9.
The National Association of Realtors announced the latest index Wednesday.
“Supply and affordability constraints prevented a bigger boost in activity from mortgage rates that lingered near all-time lows through most of the month,” the report stated.
Leading U.S. activity higher was the Northeast, where the index climbed more than 3 percent to 96.0 last month. A nearly 1 percent month-over-month gain was made in the Midwest, with the index there at 108.9.
A less than 1 percent decline from May put the index for the South at 125.9, and a more than 1 percent drop in the West left that index at 101.3.
“With only the Northeast region having an adequate supply of homes for sale, the reoccurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets, leading to the last two months reflecting a slight, early summer cool-down after a very active spring,” NAR Chief Economist Lawrence Yun stated in the report.
He explained that tight housing inventory has prevented prospective buyers from taking
advantage of exceptionally low mortgage rates.
In addition, Yun said that home prices are showing little evidence of slowing to a healthier pace that is more in sync with wage and income growth.
“Until inventory conditions markedly improve, far too many prospective buyers are likely to run into situations of either being priced out of the market or outbid on the very few properties available for sale,” Yun concluded.
