US Pending Home Sales Up 1.8%; Affordability Mixed

This uptick, however, contrasts with a 0.8% decline year-over-year, indicating a mixed market recovery. Regionally, the Midwest, South, and West experienced monthly gains, while the Northeast saw a decline.

Annually, the South and West improved, but the Northeast and Midwest faced contractions. NAR Chief Economist Dr. Lawrence Yun attributes the slight gain to improved affordability conditions, particularly in the Midwest, which was the strongest performer.

However, he cautioned that these conditions are fragile and could reverse if rising oil prices lead to higher mortgage rates. The Northeast continues to struggle with elevated home prices and limited inventory.

Despite sluggish recent job gains, a significant pent-up demand from first-time homebuyers is noted, supported by 6 million more jobs than pre-Covid levels, suggesting potential for future market activity.