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MAY 2021 PENDING HOME SALES SIGNIFICANTLY HIGHER THAN APRIL 2021, BUT ECONOMISTS EXPECT PRICE GROWTH TO SLOW IN SECOND HALF OF THE YEAR

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Everything Real Estate in the San Fernando Valley
Wednesday June 30, 2021
MAY 2021 PENDING HOME SALES SIGNIFICANTLY HIGHER THAN APRIL 2021, BUT ECONOMISTS EXPECT PRICE GROWTH TO SLOW IN SECOND HALF OF THE YEAR

According to the National Association of Realtors (“NAR”) May 2021’s pending home
sales (instances where a contract was signed for a previously-owned home, but had not closed)
was 8% higher than April 2021; this came as a surprise given April 2021’s declining home sales
paired with a peak in concerns over the affordability of the homes on the market. May 2021’s
pending home sales was also up 13.1% from May 2020, but this makes sense in light of the
COVID-19 pandemic.

The Northeast region saw the largest increase in pending sales in May 2021, with a
15.5% increase over April 2021, while the South saw pending sales increase by 4.9% compared
with the previous month. While this rate-of-growth is sustainable, many economists believe the
second half of 2021 will see a slowdown in price growth; the basis of this belief is that more
homes will come onto the market at that time, thereby increasing supply and reducing the
equilibrium price of property.

At the Chernov Team we understand that knowledge is power, and knowledge of how the
housing market is expected to perform in the second half of 2021 is powerful knowledge indeed.
At the Chernov Team we know that whoever comes to the table most prepared leaves with the
most, and the Chernov Team always leaves the table with the most.

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