Home Sales May Hit Speed Bump Due to Lack of Inventory
Home Sales May Hit Speed Bump Due to Lack of Inventory Despite how housing has been over the last year, there’s been one thing consistently holding housing back from even greater heights: a lack of inventory. The demand is there, but the supply just isn’t keeping up. And now, it appears that those chickens have come home to roost. New data from the Nation Association of Realtors shows that pending home sales, an indicator of future home sales based on signed real estate contracts, fell in January, with “inventory constraints” listed as the primary cause. According to the NAR data, pending homes sales decreased by 2.8% in January 2021 compared to December 2020, meaning that home sales could decline over the next few months. The potential decline comes on the heels of sales of both new and existing homes increasing in December and January. It should be noted that even though pending home sales fell in January when compared to December, contract signings wher...