U.S. pending home sales slid for the third consecutive month in November, dropping 2.6% from October, according to a report from the National Association of Realtors. However, year-over-year contract signings were still up by 16.4%.
“The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices,” said Lawrence Yun, NAR’s chief economist. “It is important to keep in mind that the current sales and prices are far stronger than a year ago.”
Home prices reached a 14-year high in October, according to CoreLogic’s Case-Shiller index covering home prices. The National Index is now up 24.5% from its former high in July 2006, and was up 8.4% year over year.
As 2021 approaches, Yun predicts that there will be a slight uptick in mortgage rates to around 3%, existing-home sales will increase by roughly 10% and new home sales will increase by 20%.
Find more information here: https://www.housingwire.com/articles/pending-home-sales-continue-to-slip-as-2021-approaches/