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What is the national outlook for homes sales?

Published 11:23 am Tuesday, November 17, 2015

Pending home sales cooled in September for the second straight month and to their second-lowest index reading in 2015, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 2.3 percent to 106.8 in September from a slightly downwardly revised 109.3 in August but is still 3.0 percent above September 2014 (103.7).

Lawrence Yun, NAR chief economist, says a combination of factors likely led to September’s dip in contract signings.

“There continues to be a dearth of available listings in the lower end of the market for first-time buyers, and Realtors in many areas are reporting stronger competition than what’s normal this time of year because of stubbornly low inventory conditions,” he said.

“Additionally, the rockiness in the financial markets at the end of the summer and signs of a slowing U.S. economy may be causing some perspective buyers to take a wait-and-see approach.”

Despite contract activity softening from the more robust levels seen earlier this year, Yun believes the housing market will still likely be one of the brighter spots in the economy in coming months.

“With interest rates hovering around 4 percent, rents rising at a near 8-year high, and job growth holding strong – albeit at a more modest pace than earlier this year – the overall demand for buying should stay at a healthy level despite some weakness in the overall economy.”

The Snohomish County-Camano Association of Realtors is “the voice for real estate in Snohomish County.” If you have questions for The Expert about Real Estate email us at info@sccar.com.