Image Pending home sales in the United States fell slightly in November for the third time in four months as buyers continue to battle both rising home prices and limited homes available for sale.
Overall modest gains in the Midwest and South were offset by larger declines in the Northeast and West, according to the latest pending home sales index from the National Association of Realtors (NAR).
The forward looking indicator based on contract signings decreased 0.9% to 106.9 in November from an upwardly revised 107.9 in October but is still 2.7% above November 2014.
The data also shows that although the index has increased year on year for 15 consecutive months, November’s annual gain was the smallest since October 2014 when it was 2.6%.
Lawrence Yun, NAR chief economist, said that November's dip in contract activity continues the modestly slowing trend seen ever since pending sales peaked to an over nine year high back in May.
‘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,’ he said.
‘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,’ he pointed out.
