Dive Brief:
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Pending home sales dipped 0.9% in November to a rate of 106.9, from an upwardly revised rate of 107.9 in October, the National Association of Realtors reported Wednesday.
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November's pending home sale rate was 2.7% higher than November 2014. However, last month's year-over-year increase was the smallest since October 2014, according to the NAR.
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The West saw the greatest decline in pending home sales, at a 5.5% loss from October. The Northeast posted a 3% decrease. The South saw the strongest gains in pending sales, at a 1.3% increase, followed by the Midwest, with a 1.0% gain.
Dive Insight:
The NAR cited the ongoing problems of rising home prices and limited home inventory as the drivers behind the decline in pending home sales.
"Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains," NAR Chief Economist Lawrence Yun said in a release.
Housing market reports have been mixed this month. Homebuilder confidence dipped another one point in December after a three-point decline in November. However, the Commerce Department reported housing starts surged 10.5% in November to a 1.17 million annualized rate, up from a 1.06 million rate in October and 16.5% higher than November 2014. Existing home sales plunged 10.5% in November, and new home sales jumped 4.3% last month.
