Pending Home Sales Down Slightly in January

The Housing Slowdown That Isn’t What You Think

TheNational Association of Realtors is reportingthat pending home sales were down 0.8% in January and were down 0.4% year over year. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) came in at 70.9 in January. They say inventory continues to be an issue but there are positive signs on the horizon:

“Unless housing supply increases, these additional potential buyers becoming active in the market could simply push up home prices. This will put increasing pressure on affordability, which is why it is critical to increase supply by building more homes. Fortunately, the House of Representatives recently passed the Housing for the 21st Century Act with strong bipartisan support, an important signal that addressing the nation’s housing shortage remains a shared priority. The legislation is a meaningful step toward expanding housing supply and removing barriers that make it harder for Americans to achieve homeownership,” Said the NAR’s Chief Economist, Lawrence Yun.