U.S. housing sales down 1.7% due to lack of available homes

Nov. 27 (UPI) -- A nationwide housing shortage was responsible for a near 2 percent decline of pending U.S. home sales in October, an industry report said Wednesday.

The National Association of Realtors said in its report the 1.7 percent decline came despite a 4.4 percent annual rise in home sales over last year, which has been fueled largely by lower mortgage rates. The average rate on a 30-year fixed mortgage was 1 percent higher in October 2018 than than it was last month, the analysis said.

A shortage in the inventory of available homes limited the number of October sales.

Recent data indicate that home builders are increasing construction, which could cause a decline in short-term supply.

"We still need to address and, more importantly, correct inadequate levels of inventory across the country," said NAR Chief Economist Lawrence Yun. "There is no shortage of buyers seeking homes, but a lack of available units continues to drag down the nation's housing market and overall economy."

Regionally, the report said, pending home sales in the Northeast rose 1.9 percent -- but fell 2.7 percent in the Midwest, 1.7 percent in the South and 3.4 percent in the West.

The NAR said last week existing-home sales increased 1.9 percent from September to October to a seasonally-adjusted annual rate of 5.5 million.