January pending home sales had the largest monthly increase since June 2020, rising 8.1% to a level of 82.5 on the National Association of Realtors’ Pending Home Sales Index.
All regions had increases in contract signings month-over-month. However, year-over-year, pending home sales declined 24.1% overall and dropped in every region.
The market saw improved affordability due to falling mortgage rates in December and January, according to NAR Chief Economist Lawrence Yun.
“Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur,” Yun said in a statement. “But an annual gain in home sales will not occur until 2024. Meanwhile, home prices will be steady in most parts of the country with a minor change in the national median home price.”
The full NAR report can be found here.
