U.S. Home Sales Up Over Previous Year

Pending U.S. home sales declined in November from October, but achieved gains over November 2019, says the National Association of Realtors (NAR). Month-over-month contract activity fell in each of the four major U.S. regions. However, compared to a year ago, all four areas achieved gains in pending home sales transactions. NAR’s ‘Pending Home Sales Index,’ an indicator of home sales based on contract signings, fell 2.6 per cent to 125.7 in November, the third straight month of decline. Year-over-year, contract signings climbed 16.4 per cent. "The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices," says 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." He predicts a favourable outlook for the housing market in the coming year with existing home sales increasing roughly 10 per cent and new home sales by 20 per cent next year.