Home sales have been plunging dramatically as of late. In fact, February saw home sales plunge throughout all regions of the United States.
The National Association of Realtors has determined that home sales went down 10.6% from the previous month, making it the second month in a row in which the numbers had fallen. Although analysts had predicted another decline, they hadn’t anticipated such a steep dropoff.
NAR chief economist Lawrence Yun had this to say about the subject in a recent press statement: “The demand for a home purchase is widespread, multiple offers are prevalent, and days-on-market are swift but contracts are not clicking due to record-low inventory.”
Homes for sale were at a record low number of 1.03 million units during February, which was the same in January. Compared to where the numbers were a year ago, it’s gone down a whopping 29.5%. This is the biggest annual decline ever recorded.
“The housing market of 2021 will be different than that of 2020,” BofA Securities revealed recently. “Consider the differences between this 2021 and 2020: mortgage rates are rising, consumers are shifting spending to reopening activities vs. at-home and we aren’t looking at the same degree of pent-up demand as in early 2020. We think housing activity is set to moderate.”
