Pending Homes Sales Inched Down 1.8% in July
Washington, DC, August 30, 2021-The Pending Home Sales Index (PHSI) declined 1.8% to 110.7 in July, according to the National Association of Realtors. Year-over-year, signings fell 8.5%. An index of 100 is equal to the level of contract activity in 2001.
"The market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers," said Lawrence Yun, NAR's chief economist. "That said, inventory is slowly increasing and home shoppers should begin to see more options in the coming months.
"Homes listed for sale are still garnering great interest, but the multiple, frenzied offers-sometimes double-digit bids on one property-have dissipated in most regions," Yun said. "Even in a somewhat calmer market, a number of potential buyers are still choosing to waive appraisals and inspections."
As of July, 27% of buyers bypassed appraisal and inspection contingencies. By refraining from these evaluations, in most cases, buyers are looking to accelerate the homebuying process, according to Yun.