Winter weather may have caused drop in pending home sales
Posted on Friday, January 31, 2014 at 9:41:47 AM
For many homebuyers interested in affordable residential financing, the winter isn't the time to shop. The holiday season can mean money is tight, and a potentially lower inventory might equal fewer available properties on the market. These conditions, and others, might have contributed to a recent drop in pending home sales, as well.
According to the National Association of Realtors, the weather was a leading cause in the decline in pending home sales. The forward-looking indicator decreased 8.7 percent to 92.4 in December, compared to 101.2 in November.
Lawrence Yun, NAR chief economist, attributed the changes to the severe winter weather that swept through most of the country these past few months. He added that rising home prices and a lack of inventory have also limited buyer and seller activity.
However, this lack of interest could create ideal opportunities for buyers, according to The Mortgage Reports. As the seasonal factors wane, interest will pick back up and the market will become crowded once more. Therefore, those looking to buy should get moving now, for example achieving pre-approval for residential financing and starting the home-searching process.