The National Association of Realtors is reporting that pending home sales were up 8.1% in January, 2023 – two months in a row. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) increased to 82.5 in January. The NAR says buyers are responding to better affordability from falling mortgage rates in December & January. In addition they predict the economy will continue to add jobs throughout 2023 & 2024, with the 30-year fixed mortgage rate steadily dropping to an average of 6.1% in 2023 and 5.4% in 2024.
“Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur…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” Said the NAR’s Chief Economist, Lawrence Yun.