Pending Home Sales, which track signed contracts on existing homes, dipped 0.8% from December to January and were 0.4% lower than a year ago. Winter storms likely slowed activity in the South and Northeast, while the West and Midwest saw gains.
By comparison, signed contracts on new homes hit their best levels in almost four years last November and December.
What’s the bottom line?
According to National Association of REALTORS® Chief Economist Lawrence Yun, lower mortgage rates could bring as many as 550,000 additional buyers into the market this year. The challenge: if the number of homes for sale doesn’t grow, that added demand could put upward pressure on prices.
