US pending home sales unexpectedly drop in November
US pending home sales unexpectedly fell last month, according to data from the National Association of Realtors.
The NAR’s monthly index came in at 101.4, down 0.7% from 102.1 in October and missing expectations for a 0.7% increase.
Year-over-year, contract signings dropped 7.7%, marking the eleventh straight month of annual decreases.
NAR chief economist Lawrence Yun said the current sales numbers don’t fully take into account other data.
"The latest decline in contract signings implies more short-term pullback in the housing sector and does not yet capture the impact of recent favourable conditions of mortgage rates," he said.
He added that while pending contracts have reached their lowest mark since 2014, there is no reason to be overly concerned, as he predicts solid growth potential for the long term.
The pending home sales index in the Northeast rose 2.7% 95.1 in November, while the index for the Midwest fell 2.3% to 98.1.
Pending home sales in the South fell 2.7% to an index of 115.7 in November, while for the West, the gauge increased 2.8% 87.2.