According to the National Association of Realtors, pending home sales have shockingly declined 37.8% in comparison to November of last year.
On Wednesday, the National Association of Realtors released an index showing that U.S pending-home sales had plummeted by 4% in November – marking six consecutive months of decline. This figure is at its lowest since April 2020 during the peak of pandemic lockdowns. Notably, analysts predicted a drop of only 1.8%, highlighting how dire this decrease really was.
Across the nation, contract signings experienced a decrease in all regions.
An existing-home sale is deemed pending once a contract has been signed and the closing process is underway.
Economists believe the existing-home sales index to provide a snapshot of where real estate trends are headed in upcoming months.
Transactions experienced a significant decrease of 37.8% in comparison with the data from 12 months prior.
On a monthly basis, all four major U.S. regions experienced decreases in pending sales, with the Northeast leading the way with a 7.9% drop followed by the Midwest, South and West respectively.
In the West however, pending home sales decreased by an astounding 45.7%, marking their steepest decline since November of last year.
With the exception of one month, home sales have consistently declined throughout 2022.
2022 remains to be a challenging year in terms of the housing market, with soaring mortgage rates deterring potential buyers.
In this market, buyers are struggling to find existing homes available for sale as sellers remain in their current residences tied to the historically low mortgage rates.
During the month of November, mortgage rates were substantially elevated, clocking in at an average above 7%.
In conclusion, the United States housing market is facing a decline in pending home sales due to high mortgage rates, a lack of available homes on the market and other economic factors. Despite this decline, economists remain hopeful that with continued support for the housing industry, these numbers can begin to show an upward trend in the near future. As of now, the outlook for home sales in the US remains uncertain. Only time will tell how the housing market will respond to current economic and financial conditions. Until then, it is important to continue to monitor this situation closely. Only by doing so can we truly understand the future of home sales in this country. With that, steps can then be taken to protect buyers and sellers alike and bring back stability to the housing market.