Record Low in Pending Home Sales

In an unexpected turn, pending home sales in the United States plummeted by 4.6% in January, as reported by the National Association of Realtors (NAR). This drop brought the national sales index to a historic low of 70.6, significantly underperforming against analysts' forecasts and marking a 5.2% decrease from January 2024.

Regional Sales Performance

The South experienced the most significant monthly decline at 9.2%, with the Midwest and West following at 2% and 1.2% respectively. Contrary to the national trend, the Northeast saw a slight increase of 0.3% in sales.

Factors Influencing the Market

NAR Chief Economist Lawrence Yun speculated on the potential impact of January's severe weather, the coldest in 25 years, on buyer activity. "It's unclear if the harsh conditions deterred buyers, but we might see a rebound in the coming months," Yun stated. He also highlighted the ongoing challenges of high home prices and increased mortgage rates affecting affordability.