Southern pending home sales drop 2.4 percent

​​WASHINGTON – U.S. pending home sales dropped in July, reversing course on two consecutive months of growth, according to the National Association of Realtors (NAR).​

The Pending Home Sales Index fell 2.5 percent to 105.6 in July, down from 108.3 in June. Year-over-year contract signings fell 0.3 percent, opposing last month’s increase. ​

Pending home sales in the South—the region that includes Texas—fell at a similar rate, dropping 2.4 percent to an index of 122.7 in July, which is 0.1 percent higher than last July.

"Super-low mortgage rates have not yet consistently pulled buyers back into the market," said Lawrence Yun, NAR chief economist. "Economic uncertainty is no doubt holding back some potential demand, but what is desperately needed is more supply of moderately priced homes."

Yun expects GDP growth to ease to 2 percent in 2019 and 1.6 percent in 2020, but growth predictions are somewhat uncertain due to trade tensions. With slower economic growth, interest rates will remain low. Though home sales will get a short-term boost from lower mortgage rates, existing-home sales are likely to be flat at 5.34 million in 2019 given the level of sales in the first seven months of the year. ​

Amid tight inventory conditions, the median price of existing-home sales will continue increasing, but at a slower pace of 4 percent in 2019, to $269,000, and 3 percent in 2020, to $278,500.

The Real Estate Center has more information on housing:​