The Pending Home Sales Index decreased 2.5 percent to 106 in January from a 108.7 in December, but remains 1.4 percent higher than the January 2015 level of 104.5, according to the [National Association of Realtors]http://www.realtor.org/topics/pending-home-sales/data).
Contract signings declined for a number of reasons, said NAR Chief Economist Lawrence Yun in a statement.
“While January’s blizzard possibly caused some of the pullback in the Northeast, the recent acceleration in home prices and minimal inventory throughout the country appears to be the primary obstacle holding back would-be buyers,” he said. “Additionally, some buyers could be waiting for a hike in listings come springtime.”
The PHSI in the Northeast fell 3.2 percent to 94.5 in January, but is still 10.9 percent above a year ago. The Midwest’s PHSI dropped 4.9 percent to 101.1, but is still 1.4 percent above a year ago. In the South, pending home sales inched up 0.3 percent to an index of 121.11, still 1.3 percent lower than last January. Finally, in the West, the index decreased 4.5 percent in January to 96.5, but is still 0.4 percent higher than January 2014.
