WASHINGTON (dpa-AFX) - After reporting decreases in U.S. pending home sales in the two previous months, the National Association of Realtors released a report on Monday showing a slight uptick in pending sales in the month of October.
NAR said its pending home sales index inched up by 0.2 percent to 107.7 in October from an upwardly revised 107.5 in September. Economists had expected the index to climb by 1.0 percent.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
Lawrence Yun, NAR chief economist, said pending sales have plateaued this fall as buyers struggle to overcome a scant number of available homes for sale and prices that are rising too fast in some markets.
'Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country,' Yun said.
He added, 'In the most competitive metro areas - particularly those in the South and West - affordability concerns remain heightened as low inventory continues to drive up prices.'
The report showed a notable increase in pending home sales in the Northeast, where the pending home sales index jumped by 4.5 percent.
Pending home sales in the West also climbed by 1.7 percent, while pending sales in the Midwest and South fell by 1.0 percent and 1.7 percent, respectively.
Reflecting ongoing inventory shortages and affordability pressures, NAR said existing home sales growth is expected to be tempered to 3 percent in 2016.
Home price growth is also expected to moderate slightly to 5 percent next year from 6 percent this year, NAR added.
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