The number of contracts to buy homes signed in May fell 2.1 percent from the month before, according to new numbers from the National Association of Realtors. The decline was mostly due to a more than 5 percent drop in the South. The West and Northeast both saw increases, while the Midwest was relatively flat from the month before. The numbers are more evidence that the spring market has been slower than expected.
Lawrence Yun, NAR's chief economist, thinks we may be at a turning point. “The market is at an interest point with rising inventory and lower demand,” Yun said. “Supply and demand movements suggest easing home price appreciation in upcoming months … In the second half of 2024, look for moderately lower mortgage rates, higher home sales, and stabilizing home prices.” If he's right, it'll be good news for prospective home buyers, getting ready to start shopping homes for sale.
[Source: NAR]
