A bit of a surprise in the American home market: that country's National Association of Realtors said on Friday contracts to buy previously owned homes fell unexpectedly in November,, the latest sign of weakness in the U.S. housing market.
The NAR’s pending home sales index decreased 0.7% from the prior month to 101.4. October’s index was unrevised.
Economists had forecast pending home sales to rise 0.7% last month.
Pending home contracts are seen as a forward-looking indicator of the health of the housing market because they become sales one to two months later.
Compared to one year ago, pending sales were down 7.7% in November, the eleventh straight year-over-year drop.
The housing market has been constrained by higher mortgage rates as well as land and labor shortages, which have led to tight inventory. Though house price inflation has slowed significantly, it continues to outpace wage growth, sidelining some first-time homebuyers.
The NAR previously reported that home resales rose in November, but recorded their biggest annual decline in seven-and-a-half years.
