In a surprising turn of events, the housing market has shown resilience as pending home sales continue to rise for the third month in a row. Despite the challenges posed by soaring mortgage rates and limited inventory, the National Association of REALTORS’ September Pending Home Sales Index (PHSI) recorded a remarkable 1.1% increase from the previous month, reaching a solid 72.6. However, it is important to note that compared to last year, pending transactions have experienced a significant decline of 11%.
Kate Wood, a renowned home and mortgage expert at NerdWallet, expressed her thoughts on this intriguing development. “September witnessed a modest growth in pending home sales, which is certainly encouraging. However, it is disheartening to see a year-over-year decrease despite this slight upturn,” she remarked.
This unexpected surge in pending home sales amidst the backdrop of high mortgage rates and a tight housing market showcases the resilience of both buyers and sellers. It is a testament to the unwavering determination of individuals who are eager to find their dream homes, even in the face of adversity.
As we navigate through these challenging times, it is crucial to keep a close eye on the housing market and its ever-changing dynamics. The increase in pending home sales offers a glimmer of hope, hinting at a potential shift in the real estate landscape. Let us remain optimistic and continue to support those who are tirelessly working to make their homeownership dreams a reality.
The housing market is facing a mixed outlook, with rising mortgage rates and constrained inventory leading to a decrease in homes going into contract. However, NAR’s chief economist Lawrence Yun sees potential in the new home sales market, which has continued to grow beyond expectations. With homebuilders creating more inventory, new-home sales could be higher this year despite increasing mortgage rates. NAR anticipates a further increase in newly constructed home sales in the coming years, thanks to additional inventory. Despite projected decreases in existing home sales, median existing-home prices are expected to remain stable this year before increasing slightly next year.
Stay updated with the latest mortgage news and be the first to know about exclusive interviews, breaking news, and industry events. You’ll find all the information you need to stay ahead in the market by checking out bargainhousenetwork.com . And remember, sales are expected to turn positive by early next year, with affordable regions and fast job-creating markets leading the way to recovery, particularly in the Midwest and South. So, keep an eye on these regions as they are poised for growth.