Author

Shelly Salas

When browsing the real estate market, you’ll often come across the term “pending.” But what does that really mean? Pending home sales refer to properties that are under contract—meaning the seller has accepted an offer from a buyer, and both parties have agreed to the terms. However, this doesn’t necessarily mean the sale will make it to the closing table. Various factors can still impact whether the deal goes through. Explore the key factors affecting pending sales and the latest market trends in Central Texas.

Recently, data from the National Association of Realtors showed that pending home sales in January dropped by 4.6% nationwide. One possible explanation was the extremely cold weather, marking the coldest January in 25 years. Weather conditions play a significant role in real estate transactions, particularly in regions where extreme temperatures impact mobility. Here in Central Texas, for example, a sudden freeze can bring everything to a standstill. When roads are unsafe and residents are struggling with power or water outages, it’s only natural that home tours and sales activity decline.

Real estate agents also feel the impact. If buyers aren’t willing to brave the cold for showings, agents won’t be out there either. Fortunately, advancements in technology have made virtual tours more accessible, allowing buyers to explore properties from the comfort of their homes. Still, even with these tools, harsh weather can create delays in the home buying process.

Another major factor affecting pending sales is affordability. Across the U.S., buyers are facing rising home prices, higher mortgage rates, and increased costs for property taxes and insurance. In January, mortgage rates ranged between 6.91% and over 7%, making it more difficult for buyers to enter the market. Sellers need to consider this when listing their homes. Many buyers are already stretching their budgets to afford a mortgage, so additional costs—such as solar panel liens, can make a property less attractive. Homeowners thinking about selling in the next few years should be cautious about taking on large expenses that could reduce their home equity and make their property harder to sell.

Looking at the local market, pending home sales vary significantly by area. In Bell County, 33% of single-family homes are currently under contract, while Coryell County has a slightly higher percentage at 40%. Breaking it down further, cities like Killeen, Harker Heights, and Nolanville each have around 40% of their available homes under contract. However, Temple has only 24% of its inventory in pending status, indicating a more competitive market for sellers there.

For buyers, these trends offer both opportunities and challenges. A higher percentage of pending sales suggests strong demand, while a lower percentage means more available inventory. Buyers who are flexible on location might find better deals in areas where more homes are still on the market. On the other hand, sellers need to pay attention to local market data to price their homes competitively and make necessary improvements to attract buyers.

Success in real estate depends on staying informed and adapting to market conditions. Whether you’re a buyer navigating affordability challenges or a seller trying to attract offers, understanding trends like pending sales can give you an advantage. With shifting mortgage rates, seasonal fluctuations, and regional differences in demand, having a knowledgeable agent by your side can make all the difference.