The National Association of Realtors (NAR) said yesterday that the real estate market is starting to cool down with fewer home buyers signing contracts to purchase homes.
The current index of pending home sales dropped 0.9 percent in the month of November. This is the third time in four months that the index has gone down as home buyers deal with rising home prices and limited housing inventory available for sale.
According to the NAR, pending home sales were down 5.5% in the West and 3% in the Northeast. However, in the South and Midwest, sales were up about 1%.
The existing NAR forecast for home sales is at a pace of around 5.25 million units to finish out the 2015 year, which is the strongest rate since 2006. The median home sales price would be approximately $220,700, up from 2014 to almost 6%.
Lawrence Yun, NAR’s chief economist said, “Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains.”