(Updated Nov 6, 2023)
The National Association of Realtors (NAR) Pending Homes Sales Index revealed a small uptick of 1.1% in agreements for September. NAR has forecasted that existing home sales will diminish by 17.5% in 2023 to 4.15 million before escalating by 13.5% to 4.71 million in 2024. This index is an early warning indicator for the housing market, which is based on pending sales of existing residences. A sale is considered pending when a contract is signed, but the deal needs to close.
According to NAR’s Chief Economist, Lawrence Yun, last month, pending sales surged as many buyers managed to overcome the challenges of high mortgage rates and scarce inventory levels to secure a deal.
So, what’s the issue?
Existing homes are in high demand among buyers, but the supply is falling short of their needs!”
Because of homebuilders’ ability to create more inventory, new-home sales could be higher this year despite increasing mortgage rates. This underscores the importance of increased inventory in helping to get the overall housing market moving.
In the first part of 2024, the focus will be on whether there is enough supply to prevent prices from escalating too quickly for households to handle increases in borrowing costs. Suppose the inventory of available homes remains the same. In that case, it will be challenging to exceed the sales volume achieved in the previous years.
The market is still hot for those selling their homes. It’s beneficial to take advantage of the current conditions by putting your house on the market now or in the early months of 2024. Let’s discuss maximizing this opportunity for you before the shift towards buyers begins.
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