As real estate professionals, it's crucial to stay informed about national and regional market trends. The latest data from the National Association of REALTORS® (NAR) reveals that pending home sales took a hit across the country in July 2024. The Pending Home Sales Index (PHSI), a key indicator based on contract signings, dipped by 5.5% from June, marking a notable decline.
National Overview: The PHSI fell to 70.2 in July, which is the lowest level recorded since the index's inception in 2001. Year over year, pending transactions are down by 8.5%. This drop reflects ongoing challenges in the housing market, including affordability concerns and economic uncertainty tied to the upcoming U.S. presidential election. Despite positive job growth and an increase in housing inventory, these factors were not enough to offset the difficulties many buyers face.
Northeast Shows Resilience: While all four U.S. regions saw monthly declines in pending home sales, the Northeast region, which includes New Jersey, experienced a relatively modest drop of 1.4% from June, with its PHSI standing at 64.6. Notably, the Northeast is the only region that posted a year-over-year increase, rising by 2.4% from July 2023. This resilience may be attributed to the region's robust job market and the recent easing of mortgage rates.
By contrast, other regions struggled more significantly:
- Midwest: The PHSI decreased by 7.8% to 67.8, reflecting an 11.4% decline from July 2023.
- South: The index fell by 6.5% to 83.5, a drop of 11.5% from the previous year.
- West: The PHSI decreased by 3.8% to 56.2, down 6.0% year-over-year.
What This Means for NCJAR Members: As members, understanding these trends can help you better navigate the current market landscape. The Northeast's relative stability suggests that our region may continue to attract buyers, particularly as mortgage rates decline. However, affordability remains a critical issue that could impact buyer behavior in the coming months.
Staying informed about these shifts allows you to better serve your clients, whether they're looking to buy or sell in this complex market. Keep an eye on how these trends develop, and be prepared to adjust your strategies accordingly.
For more detailed insights, feel free to reach out to us at ncjar.com
