US pending home sales unexpectedly drop

(Sharecast News) - US pending home sales unexpectedly slumped in December, pulling back after four straight months of growth, according to figures from the National Association of Realtors of Thursday. The number homes that are under contract to be sold fell by 5.5% last month, dropping across all four major regions of the US, with the most significant fall in the West.

The consensus forecast was for a no change following a 1.6% gain in November.

The pending home sales index declined to 74.2, meaning that sales were 5.0% lower than they were in December 2023.

Compared with the month before, pending home sales in the West dropped by 10.3%, while the Northeast region reported 8.1% fewer sales, the Midwest declined by 4.9% and the South fell 2.7%.

"After four straight months of gains in contract signings, one step back is not welcome news, but it is not entirely surprising," said the NAR's chief economist Lawrence Yun.

"Economic data never moves in a straight line. High mortgage rates have not significantly dented housing demand due to greater numbers of cash transactions."