KIRO Radio's Tom Kelly digs deep into the Puget Sound real estate market
Real Estate

Torrid pace of pending sales begins to slow

After reaching the highest level in over six years, pending home sales declined in June, with rising mortgage interest rates beginning to impact the market while higher home prices reduce affordability in high-cost regions, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, edged down 0.4 percent to 110.9 in June from a downwardly revised 111.3 in May, but is 10.9 percent higher than June 2012 when it was 100.0; the data reflect contracts but not closings.

Pending sales have been above year-ago levels for the past 26 months, and the pace in May was the highest since December 2006 when it reached 112.8.

"Mortgage interest rates began to rise in May, taking some of the momentum out of contract activity in June," Lawrence Yun, NAR chief economist, said. "The persistent lack of inventory also is contributing to lower contract signings."

Top Stories

  • Joining the LOB
    It's never easy being the new guy, but Tharold Simon is already making his mark

  • Smartphone Safety
    Our phones entertain us, inform us and now might protect us

  • Pumpkin Assault
    Pumpkin-flavored items are coming to store shelves whether it's fall or not
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Listen to the show
Hear Real Estate Today on KIRO Radio
Join Tom Kelly every Sunday at 9am on KIRO Radio to talk Puget Sound real estate.

Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.