The number of signed contracts to buy homes fell in July, dropping 1.8 percent from the month before according to new numbers from the National Association of Realtors. The decline comes at a time when the housing market is beginning to cool after a fast-paced spring and early summer. In short, the number of homes for sale has improved and the number of buyers has started to slow. But while the market is calmer, Lawrence Yun, NAR’s chief economist, says buyer interest is still outpacing supply and that means competition. “Homes listed for sale are still garnering great interest, but the multiple, frenzied offers – sometimes double-digit bids on one property – have dissipated in most regions,” Yun said. “Even in a somewhat calmer market, a number of potential buyers are still choosing to waive appraisals and inspections.” In fact, 27 percent of buyers bypassed appraisals and inspection contingencies in July – a sign that many home buyers continue to face competition. (source)
