An indicator of future home sales unexpectedly declined in November, indicating the third decline in the last four months.
The National Association of Realtors’ pending home sales index fell 0.9 percent in November. Economists had expected an increase for the month.
The NAR said that rising home prices and limited home availability contributed to the decline.
Pending home sales measure signed real estate contracts. Contracts are typically signed a month or two prior to the closing of the sale, making pending home sales a leading indicator for home sales measures.
Warmer weather in the Northeast failed to get many potential homebuyers to sign on the dotted line. Northeast pending home sales were down 3.5 percent, while sales fell off 5.5 percent in the West.
“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, chief economist for the National Association of Realtors.
“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.”
Still, overall U.S. pending home sales were 2.7 percent higher than November of 2014.
The material has been provided by InstaForex Company – www.instaforex.com