US pending home sales tumble 23.2% YOY in March

US pending home sales tumbled last month amid a lack of housing stock for potential buyers to choose from.

Pending home sales sunk 23.2% year-on-year in March, according to the National Association of Realtors, following a 21.1% slump in February. March's figure marked a 22nd straight month of declines.

On a monthly basis, pending home sales fell 5.2% as the South was the only region to see a month-on-month increase.

"The lack of housing inventory is a major constraint to rising sales," said NAR chief economist Lawrence Yun. "Multiple offers are still occurring on about a third of all listings, and 28% of homes are selling above list price. Limited housing supply is simply not meeting demand nationally."

Looking forward, Yun expects sales to be "notably better" in the second half of the year than the first, as job gains continue and more favourable mortgage rates look set to be made available.

Reporting by Iain Gilbert at Sharecast.com