Pending Home Sales Still Healthy, Though Dipped From the Month Before

Published:
August 29, 2013
Last updated:
April 6, 2022
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Pending home sales decreased in December 2021 from the month before, dipping 3.8% from November, according to the National Association of Realtors (NAR). All four regions posted drops in pending sales contract activity. 

Year-over-year pending sale transactions also decreased from the same time last year. More specifically, they’re down 6.9% from the same month in 2020. All regions across the country are expected to see continued decreases into 2022.

Pending sales refer to transactions where the seller has accepted an offer from a buyer but the deal has yet to close. The sale is not yet firm until all contingencies have been met. There is still a chance that the deal will not go through (for things such as failed home inspections and financing). 

That said, the majority of pending sales will go through, and the higher number of pending sales points to a busy real estate market.

Existing Home Purchase Contracts:

  • Northeast: month-over-month decrease of 1.2%, and year-over-year decrease of 10.5%.
  • Midwest: month-over-month decrease of 3.7%, and year-over-year decrease of 1.2%.
  • West: month-over-month decrease of 10% , and year-over-year decrease of 16.2%.
  • South: month-over-month decrease of 1.8%, and year-over-year decrease of 3.9%.

Pending home sales across the country were 6.9% lower year-over-year. A low supply of available homes for sale continues to limit the number of existing home sales and pressure home prices higher. Bidding wars are still common throughout many centers in Washington and Oregon, especially in metropolitan areas.

The Pending Home Sale report is seen as a forward looking indicator as homes under contract lead to actual sales in the coming months. The index looks at the number of sellers listing their homes for sale and the number of buyers looking to purchase a home.

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The Fed And The Housing Market

At its most recent meeting, the Federal Reserve announced that it would keep interest rates steady, leaving the federal funds rate within the 0% to 0.25% range.

The Fed has repeatedly stated that continued monitoring of economic trends.

The Federal Reserve’s interest rate influences the short-term lending rate, which can impact the affordability of lending. In general, when the Fed cuts rates, adjustable-rate mortgage (ARM) payments will decrease.

What Do the Pending Sales Numbers Mean to You?

A healthy number of pending sales means that there is still a good deal of activity in the real estate market. That means sellers are selling and buyers are buying.

The Pending Home Sales Index simply tells buyers that there is activity in the market, and that there is likely some competition to deal with. Buyers are encouraged to team up with a seasoned real estate agent and reliable mortgage company to put their best foot forward and ensure a successful transaction.

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Have Questions About Mortgages?

Do you have questions about mortgages or are ready to apply for one? We can help. Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you have mortgage-related questions.

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