Pending Home Sales Rise Slightly in November

Home buying appears to have ramped up toward the end of 2017. The National Association of Realtors’ (NAR) pending home sales index rose 0.2 percent in November. The small increase follows a strong October rise. 

Pending Sales Surge in the Northeast

• After October’s strong 3.5 percent monthly gain, pending home sales managed a slight, 0.2 percent gain in November. The gain suggests existing home sales remain strong in December.
• The Northeast saw pending sales surge 4.1 percent. Pending sales also rose 0.4 percent in the Midwest. Unseasonably mild fall weather likely exaggerated the extent of the improvement, as the seasonal factors are quite large this time of year.

Sales Eased Somewhat in the South and West

• Pending sales fell 0.4 percent in the South, following a 7.4 percent surge in October. That earlier surge reflected a bounce back from storm-related disruptions in August and September.
• Pending home sales fell 1.8 percent in the West, marking the third drop in the past four months. Low inventories and declining affordability remain the biggest challenges for the West and will likely weigh on sales going forward.

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