After several months of improvement, the number of contracts to buy homes fell in December, according to new numbers from the National Association of Realtors. The NAR’s Pending Home Sales Index measures contract signings, not closings, and is considered a good indicator of future home sales. In December, it was down 9.3 percent from the month before and 3.0 percent lower than year-before levels. Lawrence Yun, NAR’s chief economist, says it’s hard to say what caused the dip. “After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook,” Yun said. “Even after accounting for typical seasonal patterns, interpreting in-person home search activity in winter – especially in December – can be tricky due to public holidays, people taking time off, and wintry weather conditions.” In other words, the December decline may be a temporary bump in an overall upward trend but only time will tell. (source)
