US housing indicators weaken in July

(Sharecast News) - US homebuilder confidence softened in July, while pending home sales also pointed to cooling conditions across the housing market. The NAHB/Wells Fargo housing market index slipped to 34 from 36, missing expectations for 35. Current sales conditions eased to 37, sales expectations for the next six months fell to 43, and buyer traffic dropped to 23, underscoring weaker demand.

Builders continued to lean on incentives, with 37% cutting prices in July, up from 35% in June and marking the third consecutive monthly increase, while the average reduction held at 6% and the share using incentives rose to 63%, extending a 16‑month run above 60%.

Separately, pending home sales declined month‑on‑month across all four major US regions in June, according to the National Association of Realtors, down 5.4% on the prior month. Year‑on‑year activity improved in the Northeast and Midwest but fell in the South and West, adding to signs of a market losing momentum. On a year-on-year basis, pending sales were 0.3% softer.

"The highest mortgage rates in nearly a year and the record-high national median home price together are contributing to a tepid housing market that is especially difficult for first-time homebuyers," said NAR chief economist Lawrence Yun.

"It is worth emphasizing that it is closing activity, not contract signings, that generates economic impact. Pending contracts are only suggestive of upcoming closed deals and do not align perfectly, due to fallout rates and contract contingencies."





Reporting by Iain Gilbert at Sharecast.com