New data released by the National Association of Realtors (NAR) showed a slowdown in pending home sales for the month of June, following three months of consecutive gains.
Though pending home sales were down in June, the NAR’s index for pending home sales remains at a level consistent with average activity, according to a NAR press release.
NAR Chief Economist Lawrence Yun said the market is slowly stabilizing but the market has substantial hurdles to overcome.
“Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved,” Yun said. “However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates.”
Yun said the market will likely see a slight increase in sales during the second half of the year as rents continue to rise and housing prices slow down amid inventory increases.
Meanwhile, Yun said, existing home sales will fall 2.8 percent this year. The national median existing home price is expected to increase between five and six percent this year and into next year.