At the close of 2019, pending sales tumbled 4.9 percent, a decline from November, according to the December National Association of REALTORS® Pending Home Sales Index, based on contract signings. The decrease equates to 103.2 in the Index, which considers 100 on par with signings in 2001.
On an annual basis, contracts rose 4.6 percent.
On a regional scale, the biggest fall in the Index month-over-month was in the South, down 5.5 percent to 118.1, followed by the West, down 5.4 percent to 93.1; the Northeast, down 4 percent to 92.4; and the Midwest, down 3.6 percent to 98.8. On an annual basis, all but the Northeast rose.
According to data from realtor.com®, buyers continue to flock to markets with more practical prices, including: Fort Wayne, Ind.; Burlington, N.C.; Topeka, Kan.; Pueblo, Colo.; and Columbus, Ohio, where list prices remain roughly $250,000.
“The state of housing in 2020 will depend on whether home builders bring more affordable homes to the market,” says Lawrence Yun, chief economist at NAR. “Home prices and even rents are increasing too rapidly, and more inventory would help correct the problem and slow price gains.”
According to Yun, without an increase in inventory, home sales stand to track up 3 percent this year.
“Due to the shortage of affordable homes, home sales growth will only rise by around 3 percent,” says Yun. “Still, national median home-price growth is in no danger of falling due to inventory shortages and will rise by 4 percent. The new-home construction market also looks brighter, with housing starts and new-home sales set to rise 6 percent and 10 percent, respectively.”
For more information, please visit www.nar.realtor.
