Pending home sales slip in November

Pending home sales slipped slightly in November amid rising prices and fewer houses on the market.

The National Association of Realtors said Tuesday that its latest pending home sales index, a forward-looking indicator based on contract signings, fell 0.9 percent to 106.9 in November, the third drop in four months, from 107.9 in October, which was stronger than first reported.

{mosads}Although the index has increased year-over-year for 15 consecutive months, November’s annual gain was the smallest since October 2014.

“Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains,” said Lawrence Yun, NAR chief economist.

“While feedback from Realtors continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers,” Yun said. 

Total housing inventory at the end of November decreased 3.3 percent to 2.04 million existing homes available for sale, which is 1.9 percent lower than a year ago.

Yun said that a lack of inventory will push up prices and could create affordability issues when the spring buying season hits.

The national median existing-home price for all of this year will be close to $220,700, up about 6 percent from a year ago.

Despite the recent slowdown, existing-home sales are forecast to finish the year at a 5.25 million pace — the highest level since 2006.

Regionally, modest gains in the Midwest and the South were offset by larger declines in the Northeast and the West.

Sales fell 3 percent in the Northeast and 5.5 percent in the West while sales were up 1 percent in the Midwest and 1.3 percent in the South.