The share of annual contract signings jumped in November
Pending home sales rebounded in November from October's decline, and the National Association of Realtors predicted "favorable conditions" throughout 2020.
NAR's pending home sales index increased 1.2% to 108.5 in November as year-over-year contract signings spiked 7.4%.
However, NAR Chief Economist Lawrence Yun noted that housing inventory had declined for six straight months.
"Despite the insufficient level of inventory, pending home contracts still increased in November," said Yun. "The favorable conditions are expected throughout 2020 as well, but supply is not yet meeting the healthy demand."
At the recent NAR real estate forecast summit, NAR forecasted a 3.7% unemployment rate, and a 3.8% average mortgage rate in 2020. the association predicted home price growth rate to slow down by 3.6% after a 5% gain in 2019.
"Sale prices continue to rise, but I am hopeful that we will see price appreciation slow in 2020," Yun said. "Builder confidence levels are high, so we just need housing supply to match and more home construction to take place in the coming year."
