Pending Home Sales Hit All-Time Low in January

Pending home sales continued to decline in January, according to the National Association of Realtors’ Pending Home Sales Index, which fell by 4.6% to an all-time low of 70.6 during January. On a year-over-year basis, pending sales fell by 5.2%. A decline in pending sales was seen in nearly every region of the U.S. The Midwest, South, and West experienced month-over-month losses in transactions, while only the Northeast saw a slight gain of 0.3%. The South, on the other hand, saw the largest dip in sales at 9.2%.

"It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months," said NAR Chief Economist Lawrence Yun. "However, it's evident that elevated home prices and higher mortgage rates strained affordability." Read more