Pending Home Sales Rose 0.5% in December

Washington, DC, January 31, 2018-The Pending Home Sales Index moved higher 0.5% to 110.1 in December from an upwardly revised 109.6 in November, according to the National Association of Realtors.

With last month's modest increase, the index is now 0.5% above a year ago.

Lawrence Yun, NAR chief economist, says pending sales edged up in December and reached their highest level since last March (111.3). "Another month of modest increases in contract activity is evidence that the housing market has a small trace of momentum at the start of 2018," he said. "Jobs are plentiful, wages are finally climbing and the prospect of higher mortgage rates are perhaps encouraging more aspiring buyers to begin their search now."

Added Yun, "Sadly, these positive indicators may not lead to a stronger sales pace. Buyers throughout the country continue to be hamstrung by record low supply levels that are pushing up prices - especially at the lower end of the market."