US housing demand drops to its lowest level since 2001

U.S. housing demand opened the year on a sour note, with pending home sales falling 0.8% in January to the lowest level in data dating back to 2001, Bloomberg writes. 

The decline, which followed a steep drop in December, defied economists’ expectations for a rebound and signals that lower mortgage rates and slower price growth still aren’t enough to draw buyers off the sidelines.

For business leaders, the implications stretch beyond real estate. Housing turnover fuels spending on everything from appliances and renovations to local services and financial products. A sluggish spring selling season would weigh on brokers, homebuilders and lenders—and ripple into regional economies, particularly in the South, where contract signings fell sharply.

Policy uncertainty adds another layer. Federal proposals aimed at boosting affordability and liquidity may help at the margins, but tight supply remains a structural constraint. Unless inventory meaningfully expands, any pickup in demand could quickly reignite price pressures, complicating the path to a sustained recovery.

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