U.S. Recorded 0.3% Drop in Pending Home Sales in December

Pending home sales index in the U.S slipped 0.3% in December to 125.5, according to the National Association of Realtors press release. NAR attributes the drop in pending home sales to having too few homes for sale. 

• Contract signings rose 21.4% year over year.
• NAR chief economist Lawrence Yun believes there is a high demand for housing and many would-be buyers, and sales would rise with more new listings.
• The rise in demand without significant boosts in supply has driven house prices higher, and NAR expects more upward pressure on prices in the foreseeable future.
• Yun projects existing-home sales to hit 6.49 million this year, up 15% from 5.64 million in 2020, boosted by low mortgage rates and fiscal stimulus
• Home price appreciation will be slower, about 6.6%, as increased confidence from homebuilders will lead to more housing starts-Yun

S&P Homebuilders ETF is currently declining. XHB is down 0.96%