– The Pending Home Sales Index managed to fumble knockout, falling a whole 1.5% month over month in October. That’s a reading of 71.4 for you score keepers at home!
– This isn’t just a temporary stumble; it’s an all-time low since the forecast series began in 2001. We’re talking “Titanic hitting the iceberg” low.
– Demand for homes is still high but available inventory is behaving like a sulking teenager; choosing to stay low and making things difficult for everyone.
– High costs and dwindling supply are playing the villain to our potential homebuyer heroes. The mortgage rates are behaving like an hall-monitor on a power trip, increasing regularly and dissuading potential customers.
– Buyers are still showing an interest in the suburban and less-densely populated areas. More space + nature = less Friday-night parking lot fiascos.
– The West region of the US is the one exception to the falling sales doom and gloom.
– Analysts are expecting a moderate increase in sales in 2023. In a forecast that would make Nostradamus proud, they predict that the national median sale price will rise 5.7% by the end of 2023.

Home Sales Pulling a Vanishing Act

A Step Back for Home Sales in the Shadows of Rising Costs

The Great Magic Trick: Now You See Homes for Sale, Now You Don’t

Where did all the affordable houses go? Grab your magnifying glass and your detective hat, folks, because it seems we’ve got a mystery on our hands! Just like a startled magpie, affordable homes are hard to find, leading to a drop in pending home sales. The number that dares to measure the health of the market— the Pending Home Sales Index — slipped 1.5% month over month in October, putting it at a historical “nose-dive into the Mariana Trench” low.

Despite this fall, demand for homes is pumping faster than a hyped-up Zumba class. The culprit here? Low inventory, which is basically playing the role of that kid who always hides the remote because they don’t like what’s on TV. High costs in real estate are just another villain in the saga, pushing people away faster than a typo in a love letter.

But don’t despair just yet! The West region of the U.S. is bucking the trend. In true Wild West fashion, they’re going their own way and proving that not all pending home sales have to fall. Meanwhile, analysts are peeking into their crystal balls, predicting a moderate ramp-up in sales in 2023. The national median sale price, they prophesize, will rise by 5.7% at the end of 2023. Will they be right, or are they just shooting stars in the dark? Let’s just sit back, grab some popcorn, and watch how this real estate movie unravels! Trust me; it’s more exciting than any Hollywood blockbuster.

Original article: https://www.inman.com/2023/11/30/pending-home-sales-fall-to-lowest-level-in-more-than-20-years/