New Pending Sales Up in April

The National Association of Realtors reported a 1.3% drop in pending sales of condos, co-ops, and single-family homes in April. “Prospective buyers are feeling the double whammy this spring of inventory that’s down 9.0% from a year ago and price appreciation that’s much faster than any rise they’ve ilkely seen in their income,” said Lawrence Yun, the NAR’s chief economist.
There is significant interest in homebuying, but housing supply, especially in the more affordable lower-to-mid price range, is not keeping up with the level of demand. Yun said that investors who bought single-family homes after the financial crisis to rent out are showing no intentions of selling.This also creates pressure on inventory supply.
Rising mortgage rates are also a constraint if existing homeowners do not want to trade the lower rate they’ve locked in for a higher one. In a market with tight inventory, the decision to sell depends on whether homeowners want to risk selling and then not be able to find a new home. This hesitation contributes to the shortage of inventory and creates the current strong Seller’s market. Buyers must continue to face the reality of tight inventory, high demand and rising prices, straining affordability.

Posted on July 10, 2017 at 10:31 am
Nancy Low | Category: News

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