WASHINGTON, Aug. 29, 2024 (GLOBE NEWSWIRE) — Key Highlights

• Home sales fell 5.5 percent in July.
• Compared to the previous month, contract signings declined in all four US regions.
• Compared to the previous year, home sales increased in the Northeast but declined in the Midwest, South and West.

According to the National Association of Realtors®, home sales fell 5.5% in July. All four U.S. regions reported monthly transaction losses. Year-over-year, sales increased in the Northeast, while the Midwest, South and West saw declines.
The Pending Home Sales Index (PHSI)^* – a forward-looking indicator of home sales based on contracts signed – fell to 70.2 in July, the lowest reading since the index began tracking in 2001. Year-on-year, pending transactions fell 8.5%. An index value of 100 corresponds to the level of contract activity in 2001.
“A recovery in sales failed to materialize in mid-summer,” said Lawrence Yun, NAR chief economist. “The positive impact of job growth and higher inventories could not offset affordability issues and the wait-and-see mentality surrounding the upcoming U.S. presidential election.”
Regional breakdown of pending home sales
The PHSI for the Northeast fell 1.4% month-on-month to 64.6, an increase of 2.4% from July 2023. The index for the Midwest fell 7.8% to 67.8 in July, an 11.4% year-on-year decline.
The South PHSI fell 6.5% to 83.5 in July, down 11.5% from a year ago. The West index shrank 3.8% to 56.2 in July, down 6.0% from July 2023.
“In terms of home sales and prices, the New England region has performed relatively better than other regions in recent months,” Yun added. “The current lower and declining mortgage rates will undoubtedly bring buyers into the market.”
About the National Association of Realtors^®
The National Association of Real Estate Agents^® is America’s largest trade association, representing 1.5 million members who work in all areas of the residential and commercial real estate industry. The term Realtor^® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors^® and is committed to its strict code of ethics.

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*The Pending Home Sales Index is a leading indicator for the real estate sector based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not yet closed. However, the sale is usually completed within a month or two of the signing.
Pending contracts are good leading indicators of impending sales closings. However, the time between pending contracts and closed sales is not the same for all home sales. Variations in the length of the pending contract to closed sale process can be caused by issues such as buyer difficulty obtaining mortgage financing, home inspection issues, or appraisal problems.
The index is based on a sample covering approximately 40% of the Multiple Listing Service data each month. In developing the index model, it was demonstrated that the level of monthly sales contract activity corresponds to the level of closed existing home sales in the following two months.
An index value of 100 corresponds to the average level of contract activity in 2001, the first year examined. Coincidentally, the volume of existing home sales in 2001 was in the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: Existing home sales for August will be released on September 19. The next pending home sales index will be released on September 26. All release dates are 10 a.m. Eastern Time. Watch the Schedule for publication of NAR statistical press releases.

For information about NAR, see nar.realtorYou can find this and other press releases in the newsroom at nar.realtor/lywsroom. The statistical data of this publication as well as other tables and surveys can be found on the “Research and Statistics” tab.

• Pending home sales: July 2024