US Pending Home Sales (M/M) Jan: -2.8% (est 0.0% prev R 0.5%)

US Pending Home Sales (M/M) Jan: -2.8% (est 0.0% prev R 0.5%)

Pending Home NSA Sales (Y/Y) Jan: 8.2% (prev R 23.1%)


Pending home sales dip down a bit but remain at very high levels.  A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.  Here is some redacted commentary from the report.

Pending home sales took a step backward in January as inventory constraints continue to hold back prospective buyers, according to the National Association of Realtors. The South was the lone region with a modest gain from the month prior, however, all four areas saw contract transactions increase from a year-over-year standpoint [NKS - ranging from +8.6% in the MW to +17.1% in the S]. Year-over-year, contract signings rose 13.0%.  

"Pending home sales fell in January because there are simply not enough homes to match the demand on the market," said Lawrence Yun, NAR's chief economist. "That said, there has been an increase in permits and requests to build new homes."

There has been a consistent rise in housing permits for single-family homes for eight straight months. According to Yun, this is a good sign that the supply and demand imbalance in the residential real estate market could be easing, as soon as mid-2021.

"There will also be a natural seasonal upswing in inventory in spring and summer after few new listings during the winter months," he said. "These trends, along with an anticipated ramp-up in home construction will provide for much-needed supply."





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