Pending home sales fall further, exceeding negative forecasts

Published 27/02/2025, 16:06
Pending home sales fall further, exceeding negative forecasts

The National Association of Realtors (NAR) has released its Pending Home Sales Report, revealing a drop in the number of homes under contract yet to be sold, excluding new construction. The actual figure stands at -4.6%, indicating a more significant decline than anticipated.

The forecast had predicted a decrease of -0.9%, but the actual figure surpassed this, pointing to a more substantial contraction in pending home sales. This suggests that the housing market may be experiencing more significant headwinds than initially expected.

In comparison to the previous report, the current figure also shows a downward trend. The previous report recorded a decrease of -4.1%, meaning the pending home sales have fallen by an additional 0.5 percentage points. This consecutive drop in home sales indicates a sustained slowdown in the housing market.

The NAR’s Pending Home Sales Report is a critical economic indicator, as it measures the change in the number of homes under contract to be sold but still awaiting the closing transaction. A higher than expected reading is typically seen as positive for the USD, while a lower than expected reading is viewed as negative.

In this case, the lower than expected reading could potentially bear negative implications for the USD. However, it’s essential to note that this is just one of many factors that influence the currency’s value and overall economic health.

The NAR’s report is a significant concern for potential home buyers and sellers, real estate professionals, and policymakers who monitor the health of the housing market. It serves as a reminder that the housing market, like any sector, is subject to fluctuations and can be affected by a variety of factors, including economic conditions, interest rates, and consumer confidence.

The continued drop in pending home sales underscores the challenges facing the housing market and will likely prompt further scrutiny and analysis in the coming weeks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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