Connect with us

Hi, what are you looking for?

The American Genius Real EstateThe American Genius Real Estate

Real Estate Big Data

Pending home sales bounce back up, erasing recent hiccup

(REAL ESTATE BIG DATA) Like many of aspects of the housing market, things are starting to look up after a slight dip in January. Now the PHSI rates are up!

PHSI rates are up

After a sharp dip in December, the Pending Home Sales Index (PHSI), which tracks contracts signed on homes for sale, improved 5.2% in January, according to the National Association of Realtors (NAR).

It is notable that all regions improved in January, except for the West. Again. That said, year-over-year contract signings surged in all regions, rising 5.7% nationally.

NAR’s Chief Economist, Dr. Lawrence Yun attributed the improvement to “the good economic backdrop and exceptionally low mortgage rates,” noting that this month marks the second highest monthly improvement in over two years.

But it’s not all sunshine and rainbows.

Advertisement. Scroll to continue reading.

Dr. Yun continues to beat the warning drum, asserting that tight inventory levels continue to hold back the housing market, with December and January supply combining to mark the lowest level since 1999. “Inventory availability will be the key to consistent future gains.”

In recent months (and even years), Dr. Yun has pointed to homebuilders as the beacon of hope – if housing starts continue to surge, inventory levels could be less restrictive and allow in buyers that have been kept out of the market.

“With housing starts hovering at 1.6 million in December and January, along with the favorable mortgage rates, among other factors, 2020 has so far presented a very positive sales climate,” said Dr. Yun.

Looking to the future, he reports that “the latest stock market correction could provide exceptional, even lower mortgage rates for a few weeks, and that would help bring about a noticeable upturn in the coming months.”

PHSI regional breakdown:

Advertisement. Scroll to continue reading.
  • The Northeast PHSI rose 1.3% to 92.9 in January, 1.2% higher than a year ago.
  • In the Midwest, the index increased 7.3% to 105.3 last month, 6.5% higher than in January 2019.
  • Pending home sales in the South grew 8.7% to an index of 129.4 in January, a 7.1% increase from January 2019.
  • The index in the West declined 1.1% in January 2020 to 92.6, still a jump of 5.5% from a year ago.

Lani is the COO and News Director at The American Genius, has co-authored a book, co-founded BASHH, Austin Digital Jobs, Remote Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

AdBlocker Message

Our website is kept FREE to you by displaying online ads to our visitors. Please consider supporting us by disabling your ad blocker OR subscribing to our email newsletter: https://theamericangenius.com/housing/get-the-newsletter/

The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox.

Advertisement

KEEP READING!

Real Estate Big Data

Pending home sales (contracts signed) are down significantly, which was expected, but what of the rest of 2022?

Real Estate Big Data

(REAL ESTATE) Contract signings dip, and mortgage rates continue to rise, but builders could be the key to loosening restrictive inventory levels.

Real Estate Big Data

(REAL ESTATE) Pending home sales are up in August versus July, but are down annually and regional performance varies.

Real Estate Big Data

(REAL ESTATE BIG DATA) If you're a millennial, and wondering where you should move that can get you ahead even during this pandemic, here's...

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. We're your competitive advantage. The American Genius, LLC Copyright © 2005-2022