The National Association of Realtors® (NAR) reported on Wednesday (7-27-22) their Pending Homes Sales Index (PHSI)—based on signed real estate contracts, not actual closings, for existing single-family homes, condominiums, and co-ops—declined 8.6% in June to a reading of 91.0. The PHSI has now declined in six out of the past seven months. Year-over-year contract signings have declined 20.0%.
An index of 100 is equal to the level of contract activity in 2001.
The NAR notes all four major regions posted month-over-month and year-over-year declines. In June, the West PHSI tumbled 15.9%, down 30.9% year-over-year. That was followed by the Southern region where the PHSI fell 8.9%, down 19.2% from June 2021. The Northeast PHSI declined 6.7%, down 17.6% from last year. The Midwest PHSI decreased 3.8%, down 13.4% year-over-year.
According to NAR, buying a home in June of 2022 was about 80% more expensive than in June 2019. Nearly a quarter of buyers who purchased a home three years ago would be unable to do so now because they no longer earn the qualifying income to buy a median-priced home today.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Pending Home Sales Fell 8.6% in June