“The housing market has struggled to gain momentum during the industry’s crucial spring homebuying season,” said First American deputy chief economist Odeta Kushi. “According to data from First America Data & Analytics, historically approximately 36% of existing-home sales for the year occur from March through June.”
You can’t buy what’s not for sale
Kate Wood, home expert at NerdWallet, stressed that affordability remains a hurdle for many homebuyers.
“Given challenges to affordability from home prices and higher mortgage rates, as well as growing uncertainty about the US economy, it’s unsurprising that contract signings appear to be stalling,” Wood said. “It’s unclear at this point whether we’ll see a bump as data becomes available for the traditional spring homebuying months.”
NAR chief economist Lawrence Yun added that not all contract signings are being completed due to limited inventory. “Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving.”
“Mortgage application trends tell a similar story,” Kushi pointed out. “Since most home purchases include a mortgage, the volume of mortgage applications should lead home sales. The Mortgage Bankers Association’s seasonally adjusted purchase mortgage applications series has remained mostly flat since February. May has also been a slow month.