Pending home sales unexpectedly fell in November, according to the latest data from the National Association of Realtors…(NAR)
- M-O-M: Pending home sales fell 2.2% when compared to October 2021.
- Y-O-Y: Pending home sales fell 2.7% when compared to November 2020.
SWING & MISS: Economists had projected a 0.8% rise month-over-month.
Regionally, the South is still leading the way with a Pending Home Sales Index of 148.2 despite an 0.7% drop in November, this is down 1.3% from November 2020.
- The Midwest was the first loser with a PHSI of 116.8 thanks to a 6.3% monthly drop, the West slipped 2.2% to 105.5, and the Northeast saw the smallest monthly drop (-0.1%) but was still last with the PHSI of 99.4.
Lawrence Yun, NAR’s chief economist, said that low inventory and sticker shock are to blame for a drop in pending home sales…
- “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…While I expect neither a price reduction, nor another year of record-pace price gains, the market will see more inventory in 2022 and that will help some consumers with affordability.”