In the largest drop in almost 10 years, pending home sales declined by 4.9% in December, from the month before, according to the National Association of Realtors (NAR). The drop is largely due to a lack of homes on the market.
Lawrence Yun, chief economist for the NAR, said the shortage of homes is the worst on record noting that the number of single-family homes for sale in November was down by 1.45 million.