Despite mortgage rates near 7%, home buyers plow ahead with more options on the market. Read more from NAR’s latest housing report.
Home buyers have more housing choices this summer, and home sellers may find stiffer competition on the market. Pending home sales rose nearly 5% in June as more house hunters went under contract for a home purchase. All four major regions of the U.S. posted monthly gains in transactions, according to the National Association of REALTORS®’ Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings.
“The rise in housing inventory is beginning to lead to more contract signings,” says NAR Chief Economist Lawrence Yun. “Multiple offers are less intense, and buyers are in a more favorable position.”
Still, home buyers are contending with high home prices: The median price for an existing home surged to an all-time high of $426,900 in June. Mortgage rates also escalated to averages near 7% last month, heightening borrowing costs. But as of last week, rates had dialed back to an average of 6.78%, according to Freddie Mac.
Buyers are showing resilience in their homeownership journey. NAR economists recently pointed to growing opportunities in the housing market for real estate professionals, noting where inventory is rising in the country.
“Even more inventory is expected to come onto the housing market in the upcoming months ahead of the normal, seasonal declines in the winter,” Yun notes. “The Northeast’s small gain in contract signings is due to the ongoing housing shortage situation in that region, leading to stronger home price gains. It is a good time to list.”
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Residential Real Estate By: Melissa Dittmann Tracey
