Scarce inventory could limit home sales, boost prices

NAR: January pending sales strongest since April 2010

January’s pending home sales numbers suggest that inventory shortages will mean a less dramatic increase in sales this year than last, but that home prices will show stronger gains, the National Association of Realtors said today.

Pending home sales were up 4.5 percent from December to January and 9.5 percent from a year ago. At 105.9, NAR’s Pending Home Sales Index was at its highest level since April 2010, when home buyer tax credits helped fuel demand.