As the housing market remains strong, sales are set to rise and reach their highest in 15 years.
The housing market continues to stay strong as we’ve continued to see home prices rise and price out first-time and young buyers.
According to NAHB, despite low inventory and increasing affordability concerns, both pending home sales and existing home sales jumped in October, according to the National Association of Realtors (NAR). Though the market remains strong and sales is on pace for its strongest sales in 15 years, higher home prices continue to price out first-time and young buyers.
The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI increased 7.5% from 116.5 to 125.2 in October. On a year-over-year basis, sales were 1.4% lower than a year ago. Meanwhile, total existing home sales, including single-family homes, townhomes, condominiums and co-ops, rose 0.8% to a seasonally adjusted annual rate of 6.34 million in October, the highest level since January. However, on a year-over-year basis, sales were 5.8% lower than a year ago, the third annual decline since August 2020.