US pending home sales unexpectedly fell by 2.8% in January, according to the National Association of Realtors.
A 'significant shortage of listings' is restraining the US housing market
The series serves as a forward indicator of future sales since it measures contract signings for single-family homes, condos, and co-ops.
Buyer demand for housing is as strong as it's been since the recession, the NAR said. However, said Lawrence Yun, the chief economist, in the release.
The S&P/Case-Shiller index of home prices shows that American houses are as expensive as they were before the Great Recession. While economists aren't warning of another credit-induced bust, their concern is that limited inventories and higher interest rates may combine to raise the costs of home buying.
Pending sales in December were revised lower to 0.8% from 1.6%. Economists had forecast that pending sales rose by 1% in January, according to Bloomberg.
Pending home sales serve as a forward indicator of future sales since they measure contract signings, but not closures, for single-family homes, condos, and co-ops.