Pending Homes Sales Fell 2.8%

Pending home sales took a step backward to start 2021, according to the National Association of Realtors Pending Home Sales Index in January (NAR)

– M-O-M: The Pending Home Sales Index dropped 2.8% to 122.8 in January.

– Y-O-Y:  The index saw contract signings actually rise 13% compared to January 2020.

Regionally, was quite the mixed bag with every region seeing a drop except for the south.

– SOUTH: Was barely up (0.1%) from December, but was up a whopping 17.1% when compared to January 2020.

– MIDWEST: Declined 0.9% from December, but was up 8.6% when compared to January 2020.

– NORTHEAST: Fell 7.4% from December, but was up 9.6%  when compared to January 2020.

– WEST: Saw the biggest decline with  a 7.8% drop from December, but saw the second largest annual growth at 11.5%

Lawrence Yun, NAR’s chief economist, said in a statement, “Pending home sales fell in January because there are simply not enough homes to match the demand on the market,”  But there is some good news.  Yun continued, “That said, there has been an increase in permits and requests to build new homes.”