Breaking News: U.S. Pending Home Sales Plunge to Record Low in July
In a shocking turn of events, contracts to buy previously owned homes in the U.S. have dropped to an all-time low in July. The National Association of Realtors (NAR) reported that its Pending Home Sales Index fell by 5.5% last month to 70.2, marking the lowest reading since the series began in 2001. This decline was felt across all four regions, much to the surprise of economists who had predicted a 0.4% increase.
On a year-on-year basis, pending home sales plummeted by 8.5% in July, signaling a worrisome trend in the housing market. The NAR's chief economist, Lawrence Yun, attributed this decline to affordability challenges and a sense of uncertainty related to the upcoming U.S. presidential election.
Despite efforts to boost sales activity, such as job growth and increased inventory, the outlook remains bleak. A recent survey by the Conference Board revealed that the percentage of consumers planning to purchase a home in the next six months is at its lowest since 2013.
While house prices continue to remain high, there has been a slight slowdown in the rate of increase. The Federal Housing Finance Agency reported that house prices rose by 5.1% on a year-on-year basis in June, the smallest rise in nearly a year.
In conclusion, the current state of the housing market is cause for concern. Potential buyers are being driven away by high prices and borrowing costs, leading to a record low in pending home sales. It is crucial for individuals to carefully assess their financial situation and consider all factors before making any real estate decisions in these uncertain times.