Pending home sales fall 2.2% in November as rising prices make buyers hesitant

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Pending home sales fall 2.2% in November as rising prices make buyers hesitant
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The National Association of Realtors' pending home sales index, which tracks the number of homes that are under contract to be sold, slipped 2.2% to 122.4 in November on a monthly basis.

Brown Harris Stevens CEO Bess Freedman discusses rising home prices and the luxury real estate market.

All regions in the U.S. posted declines in pending home sales. The Midwest saw the biggest drop, falling 6.3% last month. Signings in the West fell 2.2%, while sales in the South and Northeast declined 0.7% and 0.1%, respectively. NAR chief economist Lawrence Yun attributed the drop to low housing supply and buyers being hesitant about home prices.

Total housing inventory at the end of November amounted to 1.11 million units, down 9.8% from October and down 13.3% from a year ago. Unsold inventory sits at a 2.1-month supply at the current sales pace, a decline from both the prior month and from a year ago.

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