Pending Home Sales Dip 0.4% in July

(Photo credit: Mike Sorohan)

Pending home sales decreased by 0.4% in July but are up 0.7% year-over-year, the National Association of Realtors reported Thursday.

Pending sales declined month-over-month in the Northeast and Midwest, held essentially flat in the South and rose in the West. Year-over-year, sales decreased in the Northeast and West but increased in the Midwest and South.

“Even with modest improvements in mortgage rates, housing affordability and inventory, buyers still remain hesitant,” NAR Chief Economist Lawrence Yun observed.

Sam Williamson, senior economist with First American, said “sluggish” pending home sales underscore the affordability challenges that continue to weigh on buyers. “Even in markets with softer prices and more inventory, many clients are holding back,” he said. “The hesitation isn’t just about rates–it’s about confidence. Buying a home is the biggest financial decision most people make, and uncertainty around jobs, inflation and the broader economy is keeping many on the sidelines.”

Yun noted rising mortgage applications for home purchase are an early indicator of more serious buyers in the marketplace, though many have not yet committed to a pending contract. “The Federal Reserve signaling that they may enact a lower interest rate policy should steadily enlarge the pool of eligible home buyers in the upcoming months,” he said.

July’s Realtors Confidence Index survey shows that 16% of NAR members expect an increase in buyer traffic over the next three months, unchanged from one year ago. Meanwhile, 21% expect an increase in seller traffic, up from 17% in July 2024.