(Bloomberg) -- A gauge of U.S. pending home sales fell to a six-month low in January as buyers competed for a limited number of properties.
The National Association of Realtors' index of pending home sales decreased 2.8% from the prior month to 122.8, according to data released Thursday. December data was revised to a 0.5% gain after a previously reported decline. The median estimate in a Bloomberg survey of economists called for no change in January.
The decline is the latest sign that the housing boom may be starting to cool amid soaring prices, a lack of inventory and rising mortgage rates. The residential real estate market has been a bright spot in the economy as it recovers from the pandemic. Contract signings are still up 8.2% from a year ago on an unadjusted basis.
“There are simply not enough homes to match the demand on the market” Lawrence Yun, chief economist at the NAR, said in a statement. Still, Yun said he expects inventory to rise in the coming months.
By region, contract signings fell in the West, Northeast and Midwest. In the South, the index for pending home sales rose to the highest since August.
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