The choppy performance of the US housing market continued in June with pending home sales falling 0.8% MoM (considerably worse than the 0.2% MoM rise expected).
Source: Bloomberg
That left YoY sales down 0.3% – the seventh straight monthly decline in annual growth – leaving the total pending home sales index back near record lows…
Source: Bloomberg
The supply of existing homes for sale has reached an almost five-year high, as more people list their homes for sale, but the extra inventory isn’t yet pushing prices down.
Source: Bloomberg
Mortgage applications to buy a home dropped 5% last week and are down for the last five weeks… so don’t hold your breath for any material improvement any time soon.
The Northeast was the only region to see a rise (+2.1% MoM) in pending home sales with sales in The West dropping the most (-3.9% MoM).
Pending-homes sales tend to be a leading indicator for previously owned homes, as houses typically go under contract a month or two before they’re sold.
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