Pending home sales bounce back
Pending home sales rose 1.2% in November
Marcus & Millichap CEO Hessam Nadji says more people will be able to afford homes in 2020 and the housing market is a ‘pillar of strength’ for the economy.
Pending home sales in the U.S. rebounded in November, according to the National Association of Realtors.
The Pending Home Sales Index, based on contracts signed, increased 1.2 percent to 108.5 in November after falling 1.7 percent the prior month, NAR said. On an annual basis, signings were up 7.4 percent.
“Despite the insufficient level of inventory, pending home contracts still increased in November,” said Lawrence Yun, NAR’s chief economist. “The favorable conditions are expected throughout 2020 as well, but supply is not yet meeting the healthy demand.”
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The West saw the biggest gains as signings rose 5.5 percent month over month and 14 percent on an annual basis. The Midwest saw a 1 percent month-over-month increase and 5 percent year-over-year gain.
Meanwhile, pending home sales in the South fell 0.2 percent versus last month, but were still up 7.7 percent from a year ago. The Northeast saw a 0.1 percent month-over-month drop and an annual gain of 2.6 percent.
A recent forecast by NAR projects home prices will rise 3.6 percent in 2020 after gaining 5 percent in 2019.
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“Sale prices continue to rise, but I am hopeful that we will see price appreciation slow in 2020,” said Yun. “Builder confidence levels are high, so we just need housing supply to match and more home construction to take place in the coming year.”