US pending home sales rise more slowly than expected in November

A closely-followed lead indicator for activity in the US housing sector picked up more slowly than anticipated last month.

The National Association of Realtors' Pending Home Sales index increased at a month-on-month clip of 1.2% in November to reach 108.5, putting it ahead by 7.4% versus a year earlier.

That was less than the 2.0% advance that economists had penciled-in.

NAR chief economist, Lawrence Yun, highlighted how sales had increased despite an "insufficient" level of inventories, with inventory levels having fallen for six straight months.

"The favorable conditions are expected throughout 2020 as well, but supply is not yet meeting the healthy demand," Yun said.

Growth in pending home sales was strongest in the west of the country, increasing by 5.5% on the month, while in the other three regions, the Midwest, South and Northeast, sales were only "marginally" higher, NAR said.

"Sale prices continue to rise, but I am hopeful that we will see price appreciation slow in 2020," Yun added.

"Builder confidence levels are high, so we just need housing supply to match and more home construction to take place in the coming year."