Pending home sales drop to the lowest level on record in January

High mortgage rates and elevated home prices caused a significant decline in home sales in January, with pending sales dropping 4.6% from December and 5.2% from January 2024, marking the lowest level since tracking began in 2001. Lawrence Yun, NAR’s chief economist, suggested that cold weather may have played a role in the decrease, particularly in the South, where sales fell the most. Despite a 17% increase in inventory compared to last year, home prices remain high nationally, impacting affordability and contributing to the sales decline.

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