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US Pending Home Sales Index Soars 8.1% in January, Surpassing Analysts’ Expectations

According to a report released by the National Association of Realtors (NAR), the pending home sales index in the United States rose 8.1% in January, marking the biggest rebound since June 2020. This figure surpassed analysts’ expectations, who had predicted an increase of only 1.0%.

The index measures the number of second-hand home purchase contracts that have been signed but not yet closed, and is considered a leading indicator of the health of the housing market. Typically, it takes about 1-2 months from signing a contract until the closing of the sale.

While the monthly rebound is encouraging, the index still fell 24.1% compared to January of last year. However, this decline is attributed to the ongoing effects of the COVID-19 pandemic on the housing market.

Despite the pandemic-related challenges, the housing market has remained resilient, with historically low mortgage rates and a desire for more space driving demand. The NAR expects the housing market to remain strong in the coming months, with the pending home sales index likely to continue to increase.

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