The volume of monthly contracts written on existing residential properties for sale turned lower, with activity in the West leading the drop.
After the application of seasonal adjustments, the Pending Home Sales Index came in at a preliminary level of 107.3 for November.
That turned out to be 3 percent lower than as of the previous month for the index, a forward-looking indicator based on contract signings.
The index was basically unchanged from the upwardly revised level for the same month last year.
The National Association of Realtors
reported the index Wednesday. The trade group determines the index based on a sample of around a fifth of all actual pending home sales.
An index 100 is equal to the average level of contract activity in 2001 — the first year examined. That year saw existing home sales fall within a range of 5.0 million to 5.5 million.
NAR Chief Economist Lawrence Yun explained in the report that the month-over-month slowdown was driven by rising home prices, minimal listings and increasing interest rates.
“Much more robust new home construction is needed to relieve inventory shortages and lessen the affordability pressures present throughout the country,” Yun stated.
Pending home sales in the West fell from October by 7 percent — the most of any region — placing the index there at 101.0.
The index in the Midwest declined 3 percent to 103.5 as of November.
In the South, the index retreated a percent from October to 118.7.
Only the Northeast experienced a month-over-month increase: less than 1 percent to 97.5.
