The real estate industry of the US witnessed an unlikely slump in the index of pending home sales in November 2015. The decline is in line with the previous figures that indicated the industry loses its pace during the end of the year. The contracts to purchase previously-owned homes decreased 0.9% in November, despite a 0.4% rise in October 2015. The data was released by the National Association of Realtors in Washington.
According to the group of real-estate agents, the main reason behind the decrease in sales of existing homes is the implementation of new mortgage-lending rules, which resulted in a delay to close the deal. “Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months. Available listings that are move-in ready and in affordable price ranges remain hard to come by”, said NAR chief economist Lawrence Yun.
The data reveals that two out the four areas displayed decline in sales. The Western region pending sales were down 5.5%, while the Northeast region witnessed a decrease of 3%. Contradictory, sales in South and Midwest increased by 1.3% and 1% respectively.
The overall pending sales on an unadjusted basis are up 5.1% as compared with the previous year, following a 2.3% increase in the previous 12-month period. The pending sales gauge on a seasonally adjusted basis reached its lowest level of 106.9, since January. However, conditions are developing to have a sustained increase in real estate demand.