According to data published by the US Real Estate Association on Thursday, the residential sales index (PHSI), which tracks contract signatures as a scale for future housing sales, has decreased by 5.5 % in December to 74.2.
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According to a new data announced by the National Real Estate Company Association on Thursday, housing buyers have declined in December and have retreated from the market, overturning the growth of the past four months.
The residential sales index (PHSI), which is tracking contract signatures as a scale of future housing sales, has decreased by 5.5 % in December to 74.2. The previous year’s compared contract signature also decreased by 5.0 %.
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NAR’s Chief Economist Lawrence Yun pointed out that this shift is completely unexpected because “the economic data never moves in a straight line.”
Lawrence Yun
“It’s not a welcome news to go back one step after the contract signature for four consecutive months, but it’s not completely surprising,” said Yun. “The high price of mortgages is that the demand for housing has not been significantly dented because of the large number of cash transactions.”
All four areas in the United States have registered the decrease in housing sales during the pending house compared to November, and the western part of the western part has drastically declined. In addition, the contract signature continues to decrease from the previous year, and the Midwest is currently leading due to loss.
In the Midwest, the PHSI decreased by 4.9 % in December to 74.3, reflecting the decrease of 6.9 % from December 2023. In the northeast, the northeast, which fell 1.3 % from the previous year, decreased to 62.3.
In the southern part, PHSI decreased by 2.7 % in December and 90.6, down 5.1 % from the previous year, but the west side decreased by 5.1 % from December 2023 to 5.1 %, decreasing by 5.1 %.
“Contract activities have decreased sharperly in expensive areas in the northeast and west, where the rise in mortgage rates has greatly reduced the reasonable price,” Yun explained. “In more affordable areas, gaining employment tends to have a significant impact. It is unknown whether the amount of rainfall in winter, which is heavier than winter, affected the timing of purchase.”
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