Pending Home Sales
Existing home sales are counted at closing. In contrast, new home sales are counted at contract signing.
The National Association of Realtors (NAR) posts a pending home sales report monthly. It's an preliminary count of signed contracts that acts as a leading indicator of existing home sales.
The NAR newsroom reports Pending Home Sales Slide 3.8% in December.
The index is based on a sample that covers about 40% of multiple listing service data each month. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
- Contract signings were 3.8% lower in December from the prior month.
- Contract signings were down across all regions compared to the prior month and one year ago.
- Existing-home sales are expected to decline by 2.8% in 2022, and home prices are expected to move higher by 5.1% due to the ongoing housing shortage, even as builders ramp up production.
- In the Northeast the pending home sales index fell 1.2 percent.
- In the Midwest, the index dropped 3.7 percent.
- In the South the index fell 1.8 percent.
- In the West the index plunged 10.0 percent.
The index is volatile but the decline makes sense. Mortgage rates are going up and so are prices.
It's increasingly more difficulty to come up with a down payment.
Thanks for Tuning In!
Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.
If you have subscribed and do not get email alerts, please check your spam folder.