US pending home sales drop in November

US pending home sales unexpectedly fell in November, according to data released on Wednesday by the National Association of Realtors.

The NAR’’s monthly index came in at 122.4, down 2.2%. Analysts had been expecting a 0.5% increase.

On the year, contract signings were 2.7% lower.

NAR chief economist Lawrence Yun said: "There was less pending home sales action this time around, which I would ascribe to low housing supply, but also to buyers being hesitant about home prices. While I expect neither a price reduction, nor another year of record-pace price gains, the market will see more inventory in 2022 and that will help some consumers with affordability."

Yun noted that demand remains high, with homes placed on the market for sale going from "listed status" to "under contract" in around 18 days.

"Buyer competition alone is unrelenting, but home seekers have also had to contend with the negative impacts of supply chain disruptions and labour shortages this year," he said. "These aspects, along with the exorbitant prices and a lack of available homes, have created a much tougher buying season."