US Pending Home Sales Drop to 6-Month Low Amid Decreasing Housing Supply

US pending home sales took a plunge in January, falling to the lowest level in six months as potential homebuyers competed for a diminishing supply of property.

According to the latest data published by the National Association of Realtors (NAR), the pending home sales index fell by 2.8% in January, to a reading of 122.8— the lowest since July 2020. The sudden decline was largely unexpected, especially since December data was revised upwards to reflect a 0.5% increase, and a Bloomberg survey of economists called for a flatline in the first month of 2021.

The latest index decline suggests that the booming US housing market may be at the beginning of a declining trend, especially amid surging home prices, low inventory levels, and increasing mortgage rates. Despite this however, contract signings still remain 8.2% higher compared to the same period a year ago. “There are simply not enough homes to match the demand on the market,” said NAR chief economist Lawrence Yun in a recent statement.


Information for this briefing was found via the NAR and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Jim Bianco Warns that Real Estate Brokers Are ‘Struggling to Understand the Post-Pandemic Market’

In June, a third of homes sold above their list prices, according to Jim Bianco,...

Friday, July 21, 2023, 11:41:00 AM

RE/MAX: Canadian Housing Prices Will Accelerate 9.2% in 2022

Canadian housing prices are expected to continue accelerating throughout next year, as potential homebuyers keep...

Thursday, December 2, 2021, 04:26:00 PM

US Mortgage Rates Drop to Lowest in Nearly 50 Years

As the US Federal Reserve continues to pump liquidity into the economy while maintaining near-zero...

Friday, July 17, 2020, 12:15:00 PM

‘Build Canada Homes’: A “Federal Developer” Is Framing The Incoming Elections Talk

A growing push to establish a national developer has emerged as a defining issue in...

Tuesday, April 1, 2025, 12:03:00 PM

Pending Home Sales in the US Rebound by the Most on Record

Despite the number of new coronavirus cases in the US continuing to climb, and the...

Tuesday, June 30, 2020, 08:36:49 AM