As a whole, pending home sales in October took a slight decline of 1.1% to an index of 128.9, with only the South experiencing a month-over-month gain. In comparison to last year, each region achieved gains raising the index by 20.2%.
Although the market is still hot and remaining steady, rising home prices might be hurting a homebuyer’s ability to afford homes that were once in their budget. NAR’s Lawrence Yun explains, “The combinations of these factors – scarce housing and low rates – plus very strong demand has pushed home prices to levels that are making it difficult to save for a down payment, particularly among first-time buyers, who don’t have the luxury of using housing equity from a sale to use as a down payment”. Yun also mentions that work from home flexibility has driven an increase in the demand for new homes as well.
Information provided by NAR – View Original Article Here
Pending Home Sales Dip 1.1% in October. (2020, November 19). Retrieved December 09, 2020, from https://www.nar.realtor/newsroom/pending-home-sales-dip-1-1-in-october
Written By: Haley McCarty