Outstanding home sales in the US fell in November after a “jump” in October, as high prices and low supply seem to make prospective buyers more reluctant, according to data released by the National Brokers Association. Association of Realtors) on Wednesday.
More specifically, the index of outstanding home sales, based on the signed purchase contracts, fell by 2.2% in November compared to October.
Economists polled by the Wall Street Journal expected the index to rise 0.8%.
The drop in outstanding sales was slightly higher on an annual basis, as the index fell by 2.7% compared to November of the previous year.
The drop in sales could be attributed to the low supply of housing and the skepticism shown by buyers due to high prices, says Lawrence Yun, chief economist at NAR. “While I do not expect either a drop in prices or another year of record-breaking prices, the market will see more stock in 2022 and this will help some consumers make homes more affordable,” he added.
It is worth noting that in the four major regions of the US the signed contracts fell on a monthly basis. The index fell the most in the Midwest, by 6.3%. It is followed by the regions in the west, with a decrease of 2.2%, while a smaller decline was recorded in the southern and northeastern regions, by 0.7% and 0.1% on a monthly basis, respectively.
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Source From: Capital
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