July Sees Slight Dip in Pending Home Sales
Pending home sales in the U.S. slipped 0.4% in July compared to June, though they remain 0.7% higher than in July 2024, according to the latest report from the National Association of Realtors® (NAR).
Regional Highlights:
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Northeast & Midwest: Both regions experienced a month-over-month decline.
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South: Pending sales remained nearly flat in July, but still posted a 1.8% year-over-year increase, the strongest among all regions.
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West: Enjoyed a healthy monthly gain, though still lagged behind last year’s figures.
Despite modest improvements like lower mortgage rates and increased inventory, buyers continue to move with caution, NAR Chief Economist Lawrence Yun explains:
"Even with modest improvements in mortgage rates, housing affordability, and inventory, buyers still remain hesitant… going under contract is not a decision homebuyers make quickly."
"Rising mortgage applications signal a growing pool of serious buyers… if the Fed lowers interest rates, that pool could expand further."
Florida RealtorsNational Association of REALTORS®
Additionally, NAR’s July Confidence Index reveals mixed sentiment among real estate agents:
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16% expect buyer traffic to increase in the coming three months—unchanged from last year.
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21% anticipate more sellers entering the market, up from 17% in July 2024
Why It Matters
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Pending home sales track signed contracts, offering a glimpse into what the market could look like in the next 1–2 months.
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While the year-over-year increase shows resilience, the slight monthly dip highlights continued buyer caution in today’s high-rate, high-price environment.
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Regional variations suggest localized trends and opportunities for buyers and sellers.