It is no secret that the real estate market has been heavily impacted by the COVID-19 pandemic, and recent data shows that this impact has been particularly severe in the area of pending home sales. According to a chart from Bloomberg, pending home sales in the United States have crashed by the most on record in all four regions of the country.
This downturn in pending home sales is likely due to a variety of factors, including economic uncertainty, job loss, and the difficulties of buying and selling a home during a global health crisis. It is also worth noting that the real estate market was already facing challenges prior to the pandemic, including low inventory and rising prices.
The impact of this crash in pending home sales is likely to be felt throughout the economy, as the housing market is often seen as a bellwether for overall economic health. It is also likely to have a negative impact on those who were in the process of buying or selling a home, as they may be unable to complete their transactions or may have to renegotiate terms.
According to the National Association of Realtors, pending home sales fell 3.5% in November, following a 1.8% drop in October. This marks the longest streak of declines since a seven-month slump in 2014.
The drop in pending home sales is a concerning indicator for the housing market, as it suggests a slowdown in the number of homes being put under contract for sale. This could potentially lead to a decrease in overall home sales in the coming months.
One major factor contributing to the decline in pending home sales is the increase in mortgage rates. As rates have risen, many potential buyers have found it more difficult to afford a home, leading them to postpone their home buying plans.
Additionally, economic uncertainty has also played a role in the drop in pending home sales. With the ongoing trade tensions and concerns about the global economy, some potential buyers may be hesitant to make such a large financial commitment
According to a recent report by Bloomberg, pending home sales in the country have crashed by the most on record, with all four regions of the country seeing a significant drop in activity.
The report shows that the pandemic has had a significant impact on the housing market, with many potential buyers and sellers opting to hold off on making any major decisions until the situation has improved. Additionally, the economic uncertainty caused by the pandemic has also made it difficult for many people to secure financing for their home purchases.
It is clear that the impact of the pandemic is likely to be felt for some time to come, with many people struggling to find the financial stability and security that they need to make major purchases.
The recent crash in pending home sales is a clear sign of the challenges that the housing market is currently facing. While there may be a recovery on the horizon, it is clear that the pandemic has had a major impact on the market and that it will take some time for things to return to normal.