Real Estate News

Hit hard by the highest mortgage interest rate in decades, coupled with low inventory, in August the US housing market saw its lowest contract signings of homes since April 2020. According to the National Association of Realtors (NAR), pending home sales fell by 7.1% from July. This means pending home sales were the lowest they’ve been since April 2020. In fact, the two months are tied for the lowest level since the NAR began tracking the data in 2001.

Economists had predicted that pending home sales may fall as much as 1% in August, so upwards of 7% was quite the sticker shock. All this led to an 18.7% fall in transactions year-over-year.

Because rates continue to rise throughout October, this doesn’t bode well for any upward trajectory in the market through the end of 2023. Chief Economist for the National Association of Realtors, Lawrence Yun, reported to Realtor.com, “It’s clear that increased housing inventory and better interest rates are essential to revive the housing market.” 

Regardless, though, there will always be buyers and sellers that simply MUST move. Take comfort in the fact that there will always be buyers and sellers on the market and, with these current conditions, the buyers and sellers on the market are serious. They’re there because they have to be which means deals are less likely to fall through. 

Whether you’re buying or selling, navigating today’s murky real estate waters requires a professional. Reach out to our expert agents today!