Starting 2021, pending home sales are still seeing a slight decline, lowering the index 2.8% to 122.8. The lack of inventory seems to be a major influencing factor in the decline experienced in contract signings. There is not enough supply of homes on the market to feed the demand of the prospective buyers. Although there is a decline in month-to-month transactions, all four major regions in the United States saw gains in contract signings compared to last year. This increase in January from year-to-year influenced an all-time high index for pending home sales.
NAR’s chief economist Lawrence Yun explained, “Pending home sales fell in January because there are simply not enough homes to match the demand on the market. That said, there has been an increase in permits and requests to build new homes.” With the increase in permits and requests and the spring and summer market ahead, Yun believes that this will steady the imbalance we are experiencing in the market by mid-2021.
References:
Pending home sales. (2021, March 04). Retrieved March 05, 2021, from https://www.nar.realtor/research-and-statistics/housing-statistics/pending-home-sales
Written By: Haley McCarty
