January pending home sales decreased 2.8 percent to 106.4 on the Pending Home Sales Index, compared with 109.5 in December, according to the National Association of Realtors.
There were a number of obstacles homebuyers faced in January, said Lawrence Yun, NAR chief economist, in a statement.
“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,” he 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.”
The PHSI in the Northeast rose 2.3 percent to 98.7. The Index fell 5 percent to 99.5 in the Midwest. Sales in the South pushed the PHSI 0.4 percent higher to 122.5. The PHSI in the West dropped 9.8 percent to 94.6.
