A tight supply of homes for sale was blamed for pulling down pending home sales from the highest level in more than nine years, though the decline was limited to the Midwest and South.
The Pending Home Sale Index was 110.3 in June. The
index reflects transactions with a signed contract that have not yet closed.
Compared to the previous month — which was the highest the index has been since April 2006 — pending home sales retreated 1.8 percent.
The index was reported Wednesday by the National Association of Realtors.
Last month’s decline followed five consecutive months of increases.
“Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers’ comfort level,” NAR Chief Economist Lawrence Yun stated in the report. “The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows.”
But the index has ascended 8.2 percent compared to June 2014 — marking the 10th consecutive year-over-year improvement.
Yun noted that
the improvement from a year earlier was due to sellers being motivated by strong price appreciation and an improving economy. But since most of these sellers will buy another property — the inventory will remain tight.
A three percent decline from May left the index at 123.5 in the South and 108.1 in the Midwest.
But the Northeast saw an 0.4 percent increase in the index last month to 94.3.
In the West, the index was 104.4 during June, up 0.5 percent — the most of any region.
