U.S. pending home sales drop 2.2 pct in December

Source: Xinhua | 2019-01-31

U.S. pending home sales dropped 2.2 percent in December as the stock market correction hurt consumer confidence, National Association of Realtors (NAR) said on Wednesday.
The Pending Home Sales Index fell to 99.0 in December, down from 101.2 in November. Additionally, year-over-year contract signings fell 9.8 percent, making this the 12th straight month of annual decreases.
"The stock market correction hurt consumer confidence, record high home prices cut into affordability and mortgage rates were higher in October and November for consumers signing contracts in December," said Lawrence Yun, NAR's chief economist.
Yun said so far the partial government shutdown has not caused obvious damage to home sales. As the government reopens, more mortgage options will come available for consumers, according to him.
The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.