Pending Home Sales Tumble Year-Over-Year
The comments above & below is an edited and abridged synopsis of an article by Tyler Durden
Headlines proclaim that US housing is fixed, as pending home sales jumped 3.1% month-over-month in February (a better-than-expected 2% gain), rebounding from a downwardly revised January collapse of 5%.
Bloomberg notes that while the month-over-month gain shows demand for housing is still getting support from steady hiring, the market is facing several headwinds. Buyers are up against a persistent shortage of affordable listings to choose from, property prices continue to climb, and mortgage costs are rising. What’s more, the Realtors group expects winter weather to weigh on demand in America’s northeastern district.
On a non-adjusted basis, home sales are down 4.4% year over year.
“The expanding economy and healthy job market are generating sizeable homebuyer demand, but the miniscule number of listings on the market and its adverse effect on affordability are squeezing buyers and suppressing overall activity,” said Lawrence Yun, the National Association of Realtor’s chief economist.
“Homeowners are already staying in their homes at an all-time high before selling, and any situation where they remain put even longer only exacerbates the nation’s inventory crunch,” he said.
The NAR’s 2017 Profile of Home Buyers and Sellers showed the median tenure a homeowner stayed in their house before selling was 10 years, the highest in records back to 1981.