Home sales and what is needed from here

Pending home sales in May rose 1.8% m/o/m after the 6.3% drop in April and 5.5% rise in March, covering the spring selling season. Likely a pick up in inventories is adding to more transactions but the pace of sales are still at a very depressed level, around 30 yr lows.

The NAR said this of interest, “The Northeast’s housing shortage is boosting home prices, with more than a quarter of homes selling above list price. Conversely, more inventory in the South gives home buyers greater negotiation power. Price declines in the South should be considered temporary given the region’s strong job creation.”