Pending home sales in December remained above year-over-year levels for the fourth consecutive month but decreased 3.7 percent to 100.7 from November’s 104.6, according to the National Association of Realtors’ Pending Home Sales Index.
The December figure was still 6.1 percent above December 2013’s 94.9, and reflected the highest year-over-year gain since June 2013.
The decline in contract signings was likely due to a smaller inventory and a slight acceleration in prices, said NAR Chief Economist Lawrence Yun in a statement.
“Total inventory fell in December for the first time in 16 months, resulting in fewer choices for buyers and a modest uptick in price growth in markets throughout the country,” he said. “With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up.”
The Northeast experienced the largest decline, falling 7.5 percent to 82.1 in December. That rate is still 6.3 percent higher than the previous year. The Midwest saw a decrease of 2.8 percent to 97.1, which is 1.9 percent above December 2013 levels.
Pending home sales in the South sank 2.6 percent to 116.6 in December 2014, but are 8.6 percent above last December. In the West, the index went down 4.6 percent to 94, but is 6.3 percent above one year ago.
