By Josh Boak
AP Economics Writer
WASHINGTON (AP) — September marked a slowdown in Americans signing contracts to buy homes, the second consecutive decline for a real estate market that has been rebounding for the first half of 2015.
The National Association of Realtors said Thursday that its seasonally adjusted pending home sales index dropped 2.3 percent to 106.8 last month. The index has risen 3 percent over the past 12 months, aided by solid hiring levels and low mortgage rates that fueled stronger demand during the traditional summer buying season.
But evidence of fading momentum has surfaced in recent months. Sales of newly built homes fell 11.5 percent last month, as choppy financial markets and rising home prices are creating affordability pressures for would-be buyers. The strong demand for housing due to stronger job market — with unemployment at a robust 5.1 percent — has failed to produce an influx of new listings that could help sales.
Pending sales are a barometer of future purchases. A lag of a month or two usually exists between a contract and a completed sale. Signed contracts fell in the Northeast, Midwest and South last month, while dipping slightly in the West.
Over the past 12 months, sales of existing homes have risen 8.8 percent over the past 12 months. But the inventory on the market has dropped 3.1 percent, the Realtors said last week.
A mere 4.8 months' supply of homes is available for would-be buyers, substantially below the 6 months associated with a healthy market.
The tight inventories have pushed up home values. The median home sales price was $221,900 in September, a 6.1 percent annual increase.
- Posted October 30, 2015
- Tweet This | Share on Facebook
Fewer people sign contracts to buy homes in Sept.
headlines Detroit
- Freelance court reporter enjoys serving as ‘guardian of the record’
- Federal judges approve redraw of Detroit-area state House seats ahead of 2024 election
- Many deserving candidates for Outstanding Hypocrite Award
- Daily Briefs
- LAWBreaks offers students pro bono lawyering opportunities over winter break
headlines National
- 50 Years of Service: ABA has been a ‘stalwart ally’ for LSC funding
- ACLU and BigLaw firm use ‘Orange is the New Black’ in hashtag effort to promote NY jail reform
- Biden recalls time he bluffed knowledge of torts case and why he changed his mind about civil-trial work
- Lawyers’ ‘barrage of personal attacks’ on opponents started with tissue-box toss, appeals court says
- Longtime prosecutor resigns after judge tosses him from case, citing Perry Mason-type revelations
- 24% of law students expect to work in public service, survey says