Pending Home Sales Jump by 5.2%
According to the January National Association of Realtors Pendig Home Sales report, Pending home sales activity rose in January, hitting the second-highest monthly figure in over two years!
NAR’s Pending Home Sales Index rose 5.2% month over month to 108.8 last month, surpassing the contract activity level of 100 in 2001. On a year-over-year basis, contract signings were up 5.7%.
“This month’s solid activity is due to the good economic backdrop and exceptionally low mortgage rates,” said Nar Chief Economist Lawrence Yun.
However, Yun noted that housing supply in December and January was at its lowest level since 1999.
Lawrence Yun, NAR’s chief economist, finds the outlook for 2020 home sales promising “Existing-home sales are off to a strong start at 5.46 million.” Yun said. “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales.” And that “We are still lacking in inventory,” he said. “Inventory availability will be the key to consistent future gains.”
“With housing starts hovering at 1.6 million in December and January, along with the favorable mortgage rates, among other factors, 2020 has so far presented a very positive sales climate,” Yun said. “Moreover, the latest stock market correction could provide exceptional, even lower mortgage rates for a few weeks, and that would help bring about a noticeable upturn in the coming months.”