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The number of pending sales of existing homes slowed a bit in June, after three months of increases nationally, according to a National Association of Realtors report released this morning.
In the North Texas market, the primary contributing factor could be the lack of homes for sale. The inventory of homes available in many neighborhoods has been low since the beginning of the year. Indeed, expert agents with Briggs Freeman Sotheby’s International Realty report that homes priced well and in good condition continue to sell – but the number of homes on the market still is low.
From the NAR report:
The Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 1.1 percent to 102.7 in June from 103.8 in May, and is 7.3 percent below June 2013 (110.8). Despite June’s decrease, the index is above 100 – considered an average level of contract activity – for the second consecutive month after failing to reach the mark since November 2013 (100.7).
Lawrence Yun, NAR chief economist, says the housing market is stabilizing, but ongoing challenges are impeding full sales potential. “Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved,” he said. “However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates.”
Despite these headwinds, Yun ultimately expects a slight uptick in sales during the second half of the year.
Click here to read the full report from NAR.
Click here to see the latest in real estate news. CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with six offices in Dallas, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.