A 'significant shortage of listings' is restraining the US housing market

pulse

February 27, 2017 2:56 PM

The series serves as a forward indicator of future sales since it measures contract signings for single-family homes, condos, and co-ops.

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US pending home sales unexpectedly fell by 2.8% in January, according to the National Association of Realtors.

Buyer demand for housing is as strong as it's been since the recession, the NAR said. However, said Lawrence Yun, the chief economist, in the release.

The S&P/Case-Shiller index of home prices shows that American houses are as expensive as they were before the Great Recession. While economists aren't warning of another credit-induced bust, their concern is that limited inventories and higher interest rates may combine to raise the costs of home buying.

Pending sales in December were revised lower to 0.8% from 1.6%. Economists had forecast that pending sales rose by 1% in January, according to Bloomberg.

Pending home sales serve as a forward indicator of future sales since they measure contract signings, but not closures, for single-family homes, condos, and co-ops.

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