Pending home sales drop to a record low, even worse than during the financial crisis

Pending home sales dropped to their lowest level since the National Association of Realtors began tracking the data nearly two decades ago. The drop is even worse than the depths of the financial crisis in 2008. This decline reflects the reality that the housing market, like so many other sectors of the economy, is being hit hard by the ongoing COVID-19 pandemic. This drop in demand is causing new home construction to slow, leading to a decrease in housing supply for potential buyers. Additionally, potential buyers may now be more cautious when making large purchases due to economic uncertainty.