Redfin data [1] reveals that the month of June ended with the housing market on somewhat shaky ground, with pending sales having pulled back slightly as summer nears.
For the last week of June, pending home sales decrease of 8.2% annually. This represents a 5% increase from the prior week’s 3.9%. However, compared to the same week of June 2019, this is an 8% decline.
New listings are also down 8% from this time last year. However, even with near-record low rates, those applying for mortgage applications decreased by 2% from the prior week.
Other possible reasons for the pending home sales decline include the idea that many homebuyers may have been biding their time during March and April and are now only making actual steps to purchase. Another possible cause for the decline is that it is directly linked to the current shortage of homes available in the U.S.
Redfin Houston agent Irma Jalifi commented on the current shortage: “Homebuyers are becoming frustrated because they’re just not seeing a lot they want to buy. The lack of homes for sale has caused two of my buyers to just give up when they had been trying to find a home before their leases were up at the end of July. It’s disappointing to spend so much time and effort and come up empty-handed.”
Two main questions remain for the market: Will sellers soon return to the market? And will homebuyers’ confidence remain—or even strengthen—as the market continues to recover? As the economy slowly continues to heal, one can hope. But if lockdowns return and restrictions begin to tighten once more, home sales and listings may follow suit.