Cervone Deegan + Associates is pleased to share that according to a recent release from the National Association of REALTORS® (NAR) pending home sales have been on the rise for the second consecutive month. While the number of transactions is lower than last year at this time, contract signings have increased by 8.1% in January.
“Buyers responded to better affordability from falling mortgage rates in December and January,” said NAR Chief Economist Lawrence Yun.
NAR anticipates that the economy will hold strong and continue to add jobs this year and next with 30-year fixed mortgage rates dropping to just over 6% this year and to the mid 5’s next. Yun predicts that this year we will still experience lower year-over-year sales before rebounding next year.
“Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur,” Yun said. “But an annual gain in home sales will not occur until 2024. Meanwhile, home prices will be steady in most parts of the country with a minor change in the national median home price.”
NAR also forecasts that home prices will remain more stable compared to last year in most areas. It estimates that we will see more substantial price increases resume next year in 2024.
Breakdown By Region
The Northeast pending home sales increased by 6.0% this January from the month before in December. The Midwest increased by 7.9% for the same time period.
The South increased by 8.3% with the West surged the most by 10.1% in January from the month before. “An extra bump occurred in the West region because of lower home prices, while gains in the South were due to stronger job growth in that region,” Yun added.
All in all these statistics prove good strength and positivity in the marketplace.