NAR: Pending Home Sales Index Fall 2.8% to 106.4 in January

Pending home sales decreased 2.8% to an index reading of 106.4 in January, after an upwardly revised 0.8% gain to 109.5 in December, first reported as a 1.6% gain to 109.0, according to a report released Monday by the National Association of Realtors.

An index of 100 is equal to the average level of contract activity during 2001.

Year-over-year the pending homes sales index increased 0.4% from last January, when the index was 106.0. The 106.4 reading is the lowest since January 2016.

Regionally, pending sales were mixed. The Northeast saw a 2.3% increase to 98.7, while sales fell 5.0% to 99.5 in the Midwest. Sales fell 9.8% in the West to 94.6 and sales grew 1.4% in the South to 122.5.

"The significant shortage of listings last month along with deteriorating affordability as the result of higher home prices and mortgage rates kept many would-be buyers at bay," NAR Chief Economist Lawrence Yun said. "Buyer traffic is easily outpacing seller traffic in several metro areas and is why homes are selling at a much faster rate than a year ago. Most notably in the West, it's not uncommon to see a home come off the market within a month."

Economists polled by Thomson Reuters predicted the index would be up 0.8%.

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