Why Home Sales Fell 3 Straight Months

Q: Gerald, why did home sales fall at the end of 2020. Vicky, New Brunswick, NJ

A: In the Northeast, although pending home sales fell the last few months of 2020, sales are still up from a year ago. Also the sales decline was after 5 straight months of increases. All of these statistics initially are estimates that are often revised as more information comes in. The general market trend of increased home sales continues and is more important than month to month changes. Housing contract signings remain higher than a year ago due to worsening housing inventory shortages and rising home prices. Home prices reached a 14 year high in October 2020, both existing and new home sales should increase this year particularly now that a second stimulus package has been passed and 2 vaccines are now being distributed. Thanks for your question, Vicky.

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