U.S. home sales index inches up in Nov.

CHICAGO, Dec. 27 (Xinhua) -- Pending Home Sales Index, released by the U.S. National Association of Realtors (NAR) Wednesday, reached 109.5 in November, up 0.2 percent month on month and 0.8 percent year on year.

This is the highest reading since June, when it was 110.

Meanwhile, existing home sales went up 5.8 percent, more than double wage growth in November. Inventories remained tight at a 3.4-month supply of homes on the market, which is the lowest since NAR began tracking in 1999.

"The housing market is closing the year on a stronger note than earlier this summer, backed by solid job creation and an economy that has kicked into a higher gear," said Lawrence Yun, NAR's chief economist, on NAR website.

"The strengthening economy, and expectation that more millennials will want to buy, serve as promising signs for solid homebuying demand next year, while also putting additional pressure on inventory levels and affordability," Yun said.

Yun predicts that existing home sales will finish 2017 at around 5.54 million, up 1.7 percent from 2016's 5.45 million. The national median existing home price for 2017 is expected to increase to around six percent.

Nevertheless, heading in 2018 and due to the impact from altered tax benefits of homeownership that affects some high-cost areas, existing home sales and price growth are expected to slow.

Yun predicts that in 2018, existing home sales will decline by 0.4 percent to 5.52 million, and the price growth will moderate to around 2 percent.

Pending Home Sales Index is a forward-looking indicator based on contract signings. Enditem