The Pending Home Sales Index of the National Association of Realtors (NAR) in December 2015 has slightly risen by 0.1 percent to 106.8 in December, from a downwardly revised 106.7 in November. It is also 4.2 percent above compared to the 102.5 of December 2014.
According to the press release of NAR in PR NewsWire, the pending home sales of the South, Midwest and West region of the United States decreased by 0.5 percent, 1.1 percent, and 2.1 percent respectively, while the Northeast region experienced a large increase in its Pending Home Sales Index with 6.1 percent.
"Warmer than average weather and more favorable inventory conditions compared to other parts of the country encouraged more households in the Northeast to make the decision to buy last month," said NAR chief economist Lawrence Yun. "Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With homebuilding still grossly inadequate, steady price appreciation and tight supply conditions aren't going away any time soon."
All the Pending Home Sales Index (PHSI) of the four major regions in United States is still higher in a year-over-year basis. Northeast has a PHSI of 97.8 in December, up by 15.3 percent; Midwest has 103.6, up by 3.6 percent; South has 119.3, up by 1.0 percent; and West has 97.5, up by 3.4 percent.
"The silver lining from the market turmoil in recent weeks is the fact that mortgage rates have slightly declined," said Yun. "Buyers looking to close on a home before the Spring buying season begins may be rewarded with a mortgage rate at or below four percent."
The National Association of REALTORS® is America's largest trade association, representing over 1.1 million members, including NAR's institutes, societies and councils, involved in all aspects of the residential and commercial real estate industries.
