The National Association of Realtors is reporting that pending home sales were down 5.2% in March, 2023. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) decreased to 78.9 in March. However, the NAR says while three U.S. regions posted monthly losses, the South increased. Limited inventory is once again a prime culprit.
“The lack of housing inventory is a major constraint to rising sales…Multiple offers are still occurring on about a third of all listings, and 28% of homes are selling above list price. Limited housing supply is simply not meeting demand nationally” [however] “Sales in the second half of the year should be notably better than the first half as job gains continue and more favorable mortgage rates are expected…” Said the NAR’s Chief Economist, Lawrence Yun.