December’s pending home sales data shows a rebound for the market but with clear regional variations.
The National Association of Realtors says that its Pending Home Sales Index gained 1.6 per cent nationally to 109.0 from 107.3 in November, but while there was a 5 per cent jump in the West and a 2.4 per cent increase in the South; the Northeast saw a 1.6 per cent decline while there was a 0.8 per cent slip in the Midwest.
Nationally, the issue of supply remains challenging and NAR chief economist Lawrence Yun says it will be hard for 2017 sales figures to improve on last year without additional inventory.
"The dismal number of listings in the affordable price range is squeezing prospective first-time buyers the most," said Yun. "As a result, young households are missing out on the wealth gains most homeowners have accrued from the 41 per cent cumulative rise in existing home prices since 2011."
Existing-home sales are forecast to be around 5.54 million this year, an increase of 1.7 per cent from 2016, which was the best year of sales since 2006. The median sales price is forecast to rise 4 per cent.
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