Pending Home Sales Are Slowing, but Experts Say the Market Is Turning a Corner
Pending home sales rose for the third consecutive month in February, but a 0.8% gain was underwhelming compared with the usual run-up to the spring housing market. Contract signings increased in three U.S. regions but were down 21.1% from February 2022. Still, housing experts say a volatile real estate market may be rounding a corner after contracting at the close of 2022.
Mortgage rates declined in January but rose again in February, and though home prices are beginning to fall in some overheated markets, low for-sale inventory is preventing a major housing downturn in 2023, HousingWire reports.
There’s plenty of reason for optimism, said Lawrence Yun, the NAR’s chief economist.
“After nearly a year, the housing sector’s contraction is coming to an end,” he said in a statement Wednesday. “Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months.”