Pending home sales are falling across the country, which could be a sign that you may have some trouble selling your home.
The housing market is cooling fast. Pending sales have slipped to their lowest level on record, according to the real estate company Redfin.
Redfin says pending home sales — which occur when a home sale is ready to close — dropped 32% compared to a year earlier for the four-week period ending on Jan. 8.
Some areas are seeing especially big declines. If you live in one of the following markets, you might have difficulties selling your home quickly and using the proceeds to fatten your bank account.
Decline in pending sales year over year: -50.8%
Pending sales are down dramatically in Nashville, a place that’s famous for its music. With sales declining, some home sellers are sure to end up singing the blues.
Houses were on the market for a median of 54 days in December 2022, which is the longest number of days homes have lingered for sale since February 2020.
Decline in pending sales year over year: -55.3%
Texas has become a popular place to relocate in recent years. Americans in other states have been moving to the Lone Star State in big numbers.
But that migration may be slowing down. Cities such as Austin have seen a dramatic decline in pending sales. The median home sale price in Austin was $535,000 in December, which was a 3.9% decline compared to the same period a year earlier.
Decline in pending sales year over year: -56.9%
Phoenix is another city that attracted a lot of new residents over the past few years. But things may be cooling down in the desert.
Homes in the city were on the market for a median of 61 days in December, an increase of 30 days compared to the same period from a year earlier.
Decline in pending sales year over year: -57.4%
The weather may be sunny in Jacksonville, but the housing market is showing some signs of gloom.
There were 1,072 homes sold in Jacksonville in December, according to Redfin. That marked a 45.1% decline compared to a year earlier.
Las Vegas, Nevada
Decline in pending sales year over year: -61.9%
If you want to take a gamble on real estate in Las Vegas, be careful: Right now, rolling the dice on a property might not pay off.
In December, just 15.7% of homes sold in the city went above the listing price, according to Redfin. That statistic is off from the peak for this market in May 2022, when 58.9% of homes sold above the listing price.
Before you start shopping for a home, sit down and create a budget of your estimated expenses each month to see how much of a home you can afford.
Remember to factor in regular costs like utilities, as well unexpected repairs. In fact, look into ways to make extra cash so you can boost your savings in case you suddenly need to cover repairs or other costs.
Compare Quotes Benefits
- Get quotes in 60 seconds
- Compare rates from top insurers
- Coverage you need at an affordable price
- It's free and fast to compare quotes