Pending home sales cool off

The number of homes closed on but not yet sold came in right in line with expectations for the month of October.

Pending homes sales increased by 0.1% for the month according to the Association of Realtors. This was in line with economists’ expectations.

This is a slowdown from the 1.5% increase in September, but continues to show growth for the housing sector.

Part of the reason for the slowdown, according to the NAR is the limited supply of homes for Americans to choose from.

“Many of the successful shoppers in October likely had to move fast and outbid others for the few listings available in the affordable price range,” explained Yun. “Those obtaining a mortgage last month were likely the last group of buyers to lock in a rate near historically low levels now that rates have marched to around 4 per cent since the election.”

The real estate market has been outperforming on data recently, with the S&P Case Shiller housing index hitting its highest level since 2006, housing starts hitting a nine-year high, and a strong showing from existing home sales.

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