After a year of sporadic growth, pending home sales took a 2.3% tumble as the market neared its final quarter.
According to new figures released by the National Association of Realtors, pending sales were also off by a significant 8% over the same period last year.
Regionally, pending sales were down by 3.2% in the Northeast, 3.5% in the Midwest, 1.8% in the South, and 1.4% in the West.
The NAR figures are based upon signed real estate contracts for existing single-family homes, condominiums, and co-ops.
In a statement, Lawrence Yun, chief economist for the NAR, remarked that the decrease in contract transactions was indicative of a “calmer home price trend as the market is running comfortably ahead of pre-pandemic activity.”
Yun additionally noted that, following traditional annual patterns, there will likely be less home inventory in the final quarter of this year, compared with the larger housing stock seen in the summer.
The Denver-Aurora-Lakewood metro area was listed as one of the 40 hottest markets in the country, with defined local markets in New Hampshire, North Carolina, and Missouri holding the top three slots.
Noting the ongoing increase in average home prices, Yun observed that because apartment rental rates have continued to rise, current renters may soon be seeking out homeownership opportunities, “in order to avoid the rising inflation.”
Industry reports indicate that the current average home price is at $408,800, up from 389,400 last year.
By Garry Boulard