Pending home sales were unchanged in January, an improvement from the 1% decline that was expected, but still the second lowest level recorded since the index began in 2001. The low was reached last July.
There were regional differences. Home sales fell -6.1% MoM in the South and -4.1% MoM in the Northeast. But pending home sales rose a strong +13% MoM in the West and a slight +0.6% MoM in the Midwest.
Over the past year, pending home sales of existing homes are down -20% YoY, an improvement from December's decline of -24% YoY. In order of decline, the Northeast has seen pending home sales drop -29% YoY, followed by the South at -24% YoY, the Midwest at -15% YoY and the West at -13% YoY.
This data is based on signed contracts agreeing to buy existing homes.
One bright spot in the housing market is that affordability is currently at the highest level since 2004. Unfortunately, negative sentiment and tight credit are keeping many from purchasing homes.
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