Market Turning Point: Pending Home Sales

Happy February! Homes of Silicon Valley knows that you are busy planning that Super Bowl party (and trying to forget last week’s 49er loss!), thinking about Valentine’s Day and hopefully enjoying some of this sunshine. We did want to take a moment to share a quick turning point in the market as announced just 4 days ago by the National Association of realtors (NAR)®.

On January 27^th, 2023 – NAR® revealed that “Pending home sales increased in December for the first time since May 2022 — following six consecutive months of declines.” The West demonstrated the largest increase with a month-over-month 6.4% increase of pending home sales. The national average increase is 2.5% taking into account all four regions.

In addition, NAR Chief Economist Lawrence Yun stated that “This recent low point in home sales activity is likely over…” citing that “… recent declines in [mortgage] rates are clearly helping to stabilize the market.” Yun has also projected the new ‘normal’ for mortgage rates will be in the range of 5.5% - 6.5%.

Read the full news release HERE.

If you have any questions about what this turning point means for Silicon Valley, for the spring market (which starts after the big game!) or for you – please do not hesitate to reach out!

Hope to connect soon!

- Mark