The National Association of Realtors is reporting that pending home sales were down 4.9% in December with the NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) decreasing to 103.2. However, they reported that year-over-year contract signings were up 4.6%. Once again, the reoccurring theme of low-inventory continues to be a serious concern:
“Mortgage rates are expected to hold under 4% for most of 2020, while net job creation will likely exceed two million,” said Lawrence Yun, NAR’s chief economist. While he noted that these factors are promising for the housing market, Yun cautioned that low inventory remains a significant longer-term concern.