NAR: January Pending Home Sales Down 0.8%

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The National Association of Realtors, Chicago, reported there was a 0.8% decrease in pending home sales from December to January, and 0.4% decrease year-over-year.

“Improving affordability conditions have yet to induce more buying activity,” said NAR Chief Economist Lawrence Yun. “With mortgage rates nearing 6%, an additional 5.5 million households that could not qualify for a mortgage one year ago would qualify at today’s lower rates. Most newly qualifying households do not act immediately, but based on past experience, about 10% could enter the market—potentially adding roughly 550,000 new homebuyers this year compared with last year.”

Regionally, the Northeast was down 5.7% month-over-month, and 8.3% year-over-year.

The Midwest saw a 5% increase month-over-month, but a 3.3% decrease year-over-year.

The South had a 4.5% decrease month-over-month, with a 4% increase year-over-year.

And the West saw a 4.3% increase month-over-month, and was nearly flat with a 0.3% increase year-over-year.

Several specific markets saw notable gains year-over-year–Phoenix-Mesa-Chandler, Ariz., was up 11.8%, Boston-Cambridge-Newton, Mass.-N.H., was up 10.7%, and Charlotte-Concord, Gastonia, N.C.-S.C., was up 10.7%. Rounding out the top five were San Francisco-Oakland-Fremont, Calif., up 8.9%, and Oklahoma City, Okla., up 8.7%.