U.S. Pending Home Sales Remains Historically Low Despite Modest Rebound In September
The monthly index released by the NAR on Thursday suggests that, As of September, the pending home sales in the U.S. rose by 1.1% from the month before.
But there were still depressing numbers regarding pending home sales annually. The NAR began tracking data in 2001, and the September data was still the second-lowest historical number.
The transactions lowered by 11% compared to the last year.
Nonetheless, the sales took up a steady and upward pace, exceeding the expectations on Wall Street. Economists expected the pending home sales to fall by 1.5% in September.
Nonetheless, the sales pace exceeded expectations on Wall Street. Economists were expecting pending home sales to fall 1.5% in September.
The pending home sales list showcases the data of a contract for homes on sale. But the sales are not closed yet. According to the economists, this indicates the direction of the current home sales going forward.
On Thursday, we also had an updated forecast for the existing home sales from NAR. According to the group’s expectation, the sales will fall by 17.5% in 2023. This will go down to a pace of 4.15 million, resulting in the slowest pace since 2008. But the median home price will go up by 0.1% in 2023 to $386,700, according to what NAR predicts.
Home sales are also expected to rebound in 2024 and rise to 13.5% to 4.71 million in rate. Also, next year, home prices will expect a 0.7% rise to $389,500.
Also, according to the NAR, the 30-year mortgage rate can expectedly fall to 6.9% and to 6.3% in the following year. According to Wednesday news by Mortgage News Daily, the 30-year was coming to an average of 7.98%.
A sum up of the bigger picture of the real estate sector would be – both the demand and supply sides have suffered in recent years. But the NAR confidently forecasts a recovery from it in the coming new year.
The current scenario shows homebuyers being discouraged from buying homes due to both high-interest rates and a lack of inventory. In the next 15 years, according to NAR’s expectation, the existing home sales will lower to the slowest, when the U.S. was seeing a recession due to the subprime lending crisis.
The NAR expects the pace of existing home sales to fall to the slowest in 15 years when the U.S. was in the midst of a recession caused by the subprime-lending crisis.
According to the realtors,
“Because of home builders’ ability to create more inventory, new-home sales could be higher this year despite increasing mortgage rates,”
NAR Chief Economist Lawrence Yun said.
“This underscores the importance of increased inventory in helping to get the overall housing market moving.”
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