Activity in US housing market subdued at beginning of 2018 due to supply issues

Pending home sales in the United States increased slightly in December for the third consecutive month with a rise of 0.5%, according to the latest index from realtors. However, the National Association of Realtors (NAR) is warning that in 2018, home sales and price growth are forecast to moderate, primarily because of a new tax law’s expected impact in high cost housing markets. The market continues to be held back by low supply levels, according to Lawrence Yun, NAR chief economist. He pointed out that even although pending sales are at their highest level since last March activity growth is modest.