US pending home sales weaker than expected

US pending home sales nudged up just a touch in December, according to data from the National Association of Realtors (NAR).

The NAR’s monthly index rose just 0.1% to 106.8 in December from a downwardly-revised 106.7 the previous month, as a large increase in the North-East outpaced declines in the other three major regions.

This fell well short of economists’ expectations for a 0.8% increase.

The NAR's chief economist, Lawrence Yun, said: “Warmer than average weather and more favourable inventory conditions compared to other parts of the country encouraged more households in the North-East to make the decision to buy last month."

"Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With homebuilding still grossly inadequate, steady price appreciation and tight supply conditions aren't going away any time soon."

Pantheon Macroeconomics said: “We had hoped for better, given the very favourable weather for much of the country, so this is a bit disappointing.”