The National Association of Realtors reports that pending home sales in November (meaning only signed contracts, not closings) dropped 0.9% compared to October, reports Diana Olick of CNBC. However, they were 2.7% higher than November 2014, but showed the smallest annual increase in the past year and the third monthly decline in the past four months. Low inventory and rapidly increasing home prices will decrease supply in the months to come.
"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 at 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."