Pending home sales fell more than expected in December, according to the National Association of Realtors…(NAR)
- M-O-M: The Pending Home Sales Index fell to 117.7 in December, down 3.8% from the previous month.
- Y-O-Y: The index was down 6.9% when compared to December 2020.
NOTE: Economists had projected a drop of 0.2%.
Lawrence Yun, NAR’s chief economist, noted this decline was a supply issue, but demand could be impacted going forward by rising rates…
- “Pending home sales faded toward the end of 2021, as a diminished housing supply offered consumers very few options…Mortgage rates have climbed steadily the last several weeks, which unfortunately will ultimately push aside marginal buyers.”
Despite a 1.8% month-over-month decline, the South continues to lead all regions with a Pending Home Sales Index of 145.2…
- The Midwest has the second strongest market with an index of 112.8 (-3.7%) followed by the Northeast at 98.2(-1.2%) and the West at 95.0 (-10.0%).
REMINDER: This drop is similar to the Zonda report earlier this week looking at New home pending sales that saw a 4% decline in December.
LOOKING AHEAD: Yun forecasts housing starts to rise to 1.65 million units and home prices to increase 5.1% in 2022.