bee Calculated Risk On 2/27/2025 10:00 AM AM
From the clown: Pending Home Sales Waned 4.6% in January
Pending Home Sales Pulled Back 4.6% in January According to the National Association of Realtors®. The Midwest, South and West Experienced Month-Over-Month Losses in Transactions-With the most significant drop in the South-while the Northeast Saw a Modest Gain. Year-Over-Year, Contract Signings Lowered in All Four Us Regions, with the South Seeing the Greatest Falloff.
The Pending Home Sales Index (PHSI)*-A Forward-Looking Indicator of Home Sales Based on Contract Signings- Fell 4.6% to 70.6 in January, an all-time low. (Last Year’s Cyclical Low Point In July 2024 was revised from 70.2 to 71.2.) Year-Over-Year, Pending Transactions Declined 5.2%. An index of 100 is equal to the level of contract activity in 2001.
“It is unclear if the coldest January in 25 years contributed to less buyers in the market, and if so, expect greater sales activity in upcoming months,” said Nar Chief Economist Lawrence Yun. “However, it’s evident that elevated home prices and higher mortgage rates strained affordability.”
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The Northeast PHSI Rose 0.3% from Last Month to 63.4, Down 0.5% from January 2024. The Midwest Index contracted 2.0% to 72.8 in January, Down 2.7% from the previous year.The South PHSI plunged 9.2% to 81.0 in January, down 8.8% from a year ago. The West in
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Note: Contract Signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in February and March.