Just a blip? Or is the housing market starting to cool off from the robust activity seen earlier this year?
That’s the question many may be asking after NAR Research’s Pending Home Sales Index (PHSI) declined in September (-2.3%) for the second consecutive month. All major regions showed less activity and the index itself is at its lowest since January of this year (103.7).
NAR chief economist Lawrence Yun says multiple factors are contributing to the pullback in activity, including stubbornly low inventory levels and the possibility that the instability in the financial markets in recent months is persuading some prospective buyers to hold off on buying a home.
With evidence this morning that the global economic slowdown is contributing to meager growth in the U.S., it’s fair to ask what the prospects are for the housing market in the months ahead?
For that answer, read Yun’s most recent Forbes column on why housing can still expand despite economic weakness.