In October, pending home sales fell to their lowest level since 2001, when the National Association of Realtors (NAR) started collecting this data. Pending home sales saw a 1.5% month-over-month drop in October and were down 8.5% year-over-year.
The Northeast posted a monthly gain in transactions, but the Midwest, South and West all saw losses. Year over year, all regions saw declines.
Despite mortgage rates reaching multi-decade highs, new home sales remained above the previous year’s levels. As existing home inventory waned, buyers turned to new construction in hopes of additional supply.
Homebuilder sentiment hit its lowest level since December 2022 due to affordability headwinds impacting buyer demand.
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