A gauge of U.S. pending home sales unexpectedly fell in November as
The National Association of Realtors’ index of pending home sales decreased 2.2% from a month earlier to 122.4, according to data released Wednesday.
The figures suggest the housing market is easing toward the end of a year that’s been buoyed by strong demand and low borrowing costs. However, high prices and limited inventory are weighing on activity.
“There was less pending home-sales action this time around, which I would ascribe to low housing supply, but also to buyers being hesitant about home prices,” Lawrence Yun, NAR’s chief economist, said in a statement.
Contract signings retreated across all four regions from the prior month. The Midwest posted the largest decline, falling 6.3%, the most since February.
Compared with a year earlier, contract signings were down 2.7% on an unadjusted basis.
A separate
Unlike existing home sales, which are calculated when a contract closes, the index of pending home sales is based on contract signings.
“Buyer competition alone is unrelenting, but home seekers have also had to contend with the negative impacts of supply-chain disruptions and labor shortages this year,” Yun said.