Pending home sales fell 5.7% in January after a 9.5% year-over-year decrease and three consecutive months of declines, Realtor.com reports. Though economists polled by the Wall Street Journal initially predicted a 1% increase in pending home transactions, consumers pulled back as a result of rising interest rates, higher inflation, and a lack of housing supply. On the contrary, existing home sales saw an upward trend at the start of 2022, but a slower sales rate could be on the horizon after unusually high activity during the offseason for homebuying.
The numbers: U.S. pending home sales fell a sharp 5.7% in January, according to a monthly index released by the National Association of Realtors on Friday.
The West was the only region to see an increase in activity in January. All of the regions posted declines in activity compared with 12 months ago levels.
Big picture: In general, economists think 2022 will be a tough year for housing. They didn’t expect the wheels to start shaking on the sector so early in the year.
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