“Pending Sales” are defined as homes under contract for sale. In California we also call it homes in escrow. And they are absolutely sucking hind tit. If you have a realtor or mortgage loan officer in the family, give them a hug and let them sob into your tiddies. Like Caleb and his momma.
Homes go under contract a month or two before closing, making pending sales an indicator of upcoming market activity .
What we need now to get a good market crash going is more layoffs. Layoffs means people can’t afford their homes and have to list them for sale creating high supply and low demand. Regular buyers won’t act because of high rates leaving cash rich douche bags like me a wide open lane to negotiate hard and scoop up deals. I don’t see this administration bailing out distressed borrowers with forbearance plans. But I’m getting ahead of myself by about 2 years. Patience, let the administration do their magic. New catch phrase, burn baby burn.
The National Association of Realtors' Pending Home Sales Index dropped 4.6% in January from a month earlier, reaching an all-time low of 70.6. A level of 100 is equal to housing contract activity in 2001. An earlier cyclical low of 70.2 seen in July 2024 was later revised higher.
Compared with a year earlier, contract activity declined 5.2%.
This year, higher mortgage rates also likely kept buyers away, Lawrence Yun, the NAR's chief economist, said in a statement. Particularly cold temperatures in much of the country may also have played a role.