Pending home sales fell for the sixth straight month in November, registering a month-on-month decline of 4.0%, resulting in an index of 73.9. data was released last Wednesday by National Real Estate Association.
“Pending home sales hit the second lowest monthly record in 20 years as interest rates rose at the fastest pace on record this year, resulting in a significant drop in the number of contracts signed to buy homes. We did,” said NAR Chief Lawrence Yun. The economist said in a statement. “The decline in home sales and construction has hit the wider economy.”
Year after year Pending Home Sales Index decreased by 37.8% to mark 18th Monthly consecutive yearly decline. An index of 100 equals the level of contract activity in 2001.
“November’s pending home sales reflect a frozen housing market, with buyers on the sidelines and sellers on the sidelines,” said Odeta Kushi. first american The deputy chief economist said in a statement. “However, mortgage applications show that the housing market is cooling, if not still, as mortgage rates drop.”
On a month-to-month basis, all four major US regions recorded declines, with the Northeast recording the largest monthly decline at 7.9%, recording 63.3. The West has rebounded somewhat after recording its biggest monthly drop in October. The region registered the smallest monthly decrease of 0.9%, dropping to a reading of 55.1. Year-over-year, all four regions saw declines, with the West registering the largest decline at 45.7% and the Midwest registering the smallest annual decline at 31.6%.
“Midwest areas with relatively affordable housing prices have held up better, while less affordable western areas have suffered the biggest declines in activity,” Yoon said.
Kushi added:
