Dive Brief:
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The rate of pending home sales, which indicates the number of U.S. homes currently under contract, decreased 2.8% to 106.4 in January from 109.5 in December, according to the National Association of Realtors’ Pending Home Sales Index released Monday.
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Of the regions tracked, the Northeast posted the biggest hike in pending home sales in January at 2.3% to 98.7 and is up 3.6% from a year ago. The South saw a modest increase of 0.4% to 122.5 and is 2% ahead of January 2016. The West saw the largest drop at a 9.8% dip in January to 94.6, down 0.4% from a year ago. The Midwest, in turn, fell 5% to 99.5 during the month and is 3.8% lower than the year-ago mark.
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The index’s January reading is 0.4% above the same period a year ago.
Dive Insight:
Regional divides played out in January's pending home sales for the second-straight month, with more buyers than sellers in several key metros during the period, according to NAR Chief Economist Lawrence Yun.
Although pending sales dipped in January, the month's existing-home sales kept pace, rising 3.3% to its strongest posting in a decade. New home sales, in turn, saw a 3.7% uptick that has observers hopeful for a solid start for 2017.
Despite positive growth on two of three sales fronts, the market will need to withstand pressure from persisting inventory and skilled-labor shortages, as well as low lot availability, in order to continue its path to post-recession recovery. A rise in building permit authorizations in January bodes will for future activity to generate the supply needed to fulfill current demand.
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