Pending sales slide 5.4% in June under pressure from high rates

The latest data on pending home sales is out, and it's not looking great. Contract signings dropped 5.4% in June, which is a significant reversal from the gains seen in the spring. This decline was felt across all four regions, suggesting that high interest rates are having a broad impact on the housing market.

This matters because pending sales are often a leading indicator of future closings. If contract signings are down, it's likely that closings will follow suit in the coming months. With interest rates still high, it's likely that many buyers are being priced out of the market or are choosing to wait on the sidelines. This could be a sign that the market is shifting towards a more balanced state, but it's also a concern for sellers who may have been counting on a strong summer sales season.

As we look ahead, it's worth keeping an eye on how interest rates and inventory levels evolve. If rates remain high, it's possible that we'll see further declines in pending sales. On the other hand, if rates start to come down or inventory levels increase, we could see a rebound in buyer activity. For now, it seems like the market is in a bit of a holding pattern, and we'll need to see how things shake out over the next few months.

Originally reported by inman.com. ASIDNews adds analysis for real estate & property readers.