Pending Home Sales index dipped 1.3% in April following a 0.9% slip in March. This measure of contracts signed on existing homes predicts a slight pullback in those sales for May and June. The problem is supply, with inventories down 9% from a year ago, not demand. “Realtors are indicating that foot traffic is higher than a year ago,” according to the National Association of Realtors (NAR) chief economist.
With supply low and demand high, economists expect prices to rise, and they have. Last week the March S&P CoreLogic Case-Shiller National Home Price Index posted a 5.8% annual gain. We also had the Black Knight Home Price Index with an identical 5.8% yearly hike, which got economists parroting each other about affordability concerns. So it was refreshing when a major provider of settlement services reported that although affordability is decreasing, home prices adjusted for changes in income and interest rates are still 32.5% below their July 2006 peak and even 9.3% below prices in January 2000. Nothing to squawk about there. Thanks to Amy Oister of Supreme Lending www.AmyOister.SupremeLending.com for sharing”Inside Lending Market Snapshot”