The National Association of Realtors recently reported a 8.5% drop in pending home sales for July compared to last year.
This decrease is largely due to timing. While spring and summer are usually peak seasons for buying a home, sales have lagged due to limited inventory and high property prices.
Fewer buyers are entering the market, despite strong demand, as many are adopting a ‘wait and see’ approach. Potential buyers are holding off, hoping for further declines in mortgage rates later this year, which is widely anticipated.
These expectations are influenced by slowing inflation and an uncertain economic climate, along with concerns about housing policy ahead of the upcoming presidential election in November.
Economists generally agree on one key point: home prices are unlikely to decrease. A drop in mortgage rates could attract more buyers to the market, potentially increasing pressure on prices.
For prospective buyers, waiting on the sidelines may not be the best approach. Exploring options like bridge loans could provide a strategic advantage in today’s competitive market.
