Fall in pending home sales in September

Pending home sales declined by 2.3 percent in September, much to the surprise of most analysts, many of whom were expecting a modest monthly gain. Continued high home prices and a rise in the mortgage rate to 3.15 percent may have contributed to the decrease.

With low inventory expected to continue, it may be that buyers will pause their home search until 2022. On the other hand, rising rents may push would-be buyers back in the market sooner than expected.

Pending Home Sales Continue To Slide

Green Escrow | Real Estate News

We won’t ask you to “stop us if you’ve heard this before,” because you have: for the 13th consecutive month Bay Area pending home sales have declined. October saw an even steeper decline falling by 10.5 percent.

Of course, declining affordability and low inventory remain the primary concerns.

And – once again – buyer demand remains vigorous with two-thirds of the homes on the market receiving multiple offers. Finally, real estate professionals report that open-house traffic was greater this year than last.

Pending Home Sales Index Down Nationwide

Green Escrow | Real Estate

It’s not just the Bay Area – see Pending Home Sales in Bay Area Continue to Decline – the National Association of Realtors reports that the Pending Home Sales Index fell for the third time in the last four months.

Once again, low inventory is cited as a prime factor although the fact that median home prices nationwide have risen by 38 percent over the last five years.

However, buyer demands remains strong with the average listing time for available homes continuing to decline.

Pending Home Sales in Bay Area Continue to Decline

Green Escrow | Real Estate News

The California Association of Realtors’ latest Pending Home Sales Index reports that pending home sales in the Bay Area were down by 11.5 percent in July.

Once again, low inventory results in increased competition with 66 percent of homes receiving multiple offers in June.

Analysts say that low supply plus continued high demand could result in double-digit-percent home price appreciation although sales activity is expected to slow in the coming months.