The National Association of Realtors found pending home sales fell in August as contract signings modestly declined, but they still project healthy supply and demand and price growth. Year-over-year, for 12 consecutive months, pending home sales have increased.
According to the NAR's Pending Home Sales Index, contract signings decreased 1 point 4 percent to 109 point 4 in August, down from 110 point 9 in July. However, the index is still 6 point 1 percent higher than 103 point 1 recorded in August 2014. NAR also forecasts the national median existing–home price is expected to increase 5 point 8 percent to 220 thousand 300 dollars in 2015. Meanwhile, Yun forecasts total existing–home sales this year to increase 7 percent to around 5 point 28 million.
The past decade has seen costs for homeowners decline, yet costs for renters have increased. Today, about 11 million families of families who rent spend more than 50 percent of their income on rent. Approximately 59 percent of households formed in the 20-year period between 2010 and 2030 will be renters; the increasing demand will stress low vacancy rates and increase rents even further. In a report by Center Creek Capital and Urban Institute, SFR should be considered by policymakers as an integral part an affordable housing strategy because of volume, location, neighborhood impact, and affordability.