Washington (AFP) - US pending home sales slid for a second straight month in September but the trend in the housing market remains on an upward track, an industry group said Thursday.
Rising prices and low inventory of homes on the market has been restraining sales in recent months. The September decline of 2.3 percent from August was only the third month-on-month drop in the year so far, the National Association of Realtors reported.
The drop in contract signings for previously owned homes, the majority of the US housing market, surprised analysts, who forecast a modest 0.6 percent rise instead.
But sales were up 3.0 percent year-on-year.
"There continues to be a dearth of available listings in the lower end of the market for first-time buyers," said Lawrence Yun, NAR chief economist, a troubling sign for longer-term growth in the housing market.
"Additionally, the rockiness in the financial markets at the end of the summer and signs of a slowing US economy may be causing some prospective buyers to take a wait-and-see approach," he said.
Despite the soft patch, Yun said that the housing market likely would remain one of the bright spots in the US economy.
"With interest rates hovering around four percent, rents rising at a near eight-year high, and job growth holding strong -- albeit at a more modest pace than earlier this year -- the overall demand for buying should stay at a healthy level despite some weakness in the overall economy," he said.
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