Industry News
Pending home sales across the country saw a slight increase in August 2024, rising by 0.6%, according to the National Association of REALTORS® (NAR). For NCJAR members, this uptick provides valuable insights into the state of the housing market, especially as contract signings are a key indicator of future home sales. While the Midwest, South, and West posted monthly gains, the Northeast region, which includes New Jersey, experienced a decline.
Regional Breakdown and Market Trends
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, increased to 70.6 in August. However, year-over-year, pending transactions are down 3%. This mixed picture points to regional variations in market activity:
- The Northeast saw a 4.6% drop from last month, with a 2.2% year-over-year decline.
- The Midwest grew 3.2% in August but still saw a 3.6% annual drop.
- The South edged up by 0.1%, though it decreased 5.3% from the prior year.
- The West showed the strongest performance, increasing 3.2% from last month and up 2.7% compared to August 2023.
As a member of NCJAR, you know that your clients rely on you to guide them through one of the most significant decisions of their lives—buying a home. With the release of the new Consumer Guide on Open Houses and Written Agreements, you have a powerful tool at your disposal to ensure your clients are well-informed and confident throughout the process.
Why Share This Guide?
The recent changes to the requirements surrounding written agreements might leave some consumers with questions about when and why they need to sign an agreement with their Realtor®. By sharing this guide, you can demystify the process, foster trust, and reinforce your commitment to transparency and clarity. This guide is designed to answer common questions and to highlight the importance of understanding the home-buying process.
As the real estate market continues to evolve, it's crucial for REALTORS® to stay informed on the latest trends affecting our industry. According to the National Association of REALTORS® (NAR), August brought some mixed signals to the housing market, with existing-home sales dipping in several regions. Here’s what NCJAR members need to know.
National Sales Overview
Existing-home sales fell by 2.5% from July to August 2024, marking a seasonally adjusted annual rate of 3.86 million transactions. Compared to the same time last year, the market has seen a 4.2% drop in sales, down from 4.03 million in August 2023. However, NAR’s Chief Economist, Lawrence Yun, expressed cautious optimism, noting that decreasing mortgage rates and increased inventory could create more favorable conditions in the coming months.
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.
