- Lawrence Yun, the NAR chief economist
US pending home sales increased less than expected in October, adding to signs that the housing market recovery was losing steam following a strong start to the year. According to the National Association of Realtors, its seasonally adjusted pending home sales index climbed 0.2% to 107.7. Strong job gains as well as low mortgage rates boosted sales for much of the year. However, rising home values and limited inventories have restrained further growth in the closing months of 2015. A limited selection of homes on the market has pushed up sales prices 5.8% from a year ago to a median of $219,600. A separate report from the realtor group revealed that finalized contracts to buy a home dropped to 5.36 million on an annualized basis in October, after recording one of the best readings of the recovery in the preceding month.
Looking ahead, the NAR predicts more improvement in home sales, although the extent of the gains will depend on inventory growth. Existing home sales are likely to increase to 5.3 million by the end of the next year to mark their highest level in a decade, the NAR expects.
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