NAR released a summary of pending home sales data showing that January’s pending home sales dipped 2.8 percent from last month but are modestly up 0.4 percent from a year ago. As prices continue to rise, affordability is becoming an issue for some potential homebuyers and fewer housing options have contributed to fewer contracts signed this month.
Pending sales are homes that have a signed contract to purchase on them but have yet to close. They tend to lead existing-home sales data by 1 to 2 months.
Two of the four regions showed inclines from a year ago. The Northeast lead with an increase of 3.6 percent followed by the South 2.0 percent. The West had a decline of 0.4 percent. The Midwest had the biggest decline of 3.8 percent.
From last month, the South and the Northeast were the only regions to have an increase. The Northeast has the biggest increase of 2.3 percent followed by the South with 0.4 percent. The Midwest had a decline of 5.0 percent and the West had the biggest decline 9.8 percent.
The pending home sales index level for the month was 106.4 for the US. December’s data was revised to 109.5.
The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing home sales above the 5 million mark.