Pending home sales slipped 0.7% to an index reading of 106.2 in July, after a revised 1.0% gain to 107.0 in June, according to a report released Wednesday by the National Association of Realtors.
An index of 100 is equal to the average level of contract activity during 2001.
June’s figure was first reported as a 0.9% climb to 106.9.
Year-over-year the pending homes sales index decreased 2.3% from last July, when the index was 108.7. This is the seventh consecutive month sales have dropped on an annual basis.
IFR Markets predicted the index would be up 0.4%.
Regionally, pending sales were mixed. Northeast sales rose 1.0% to 94.6, in the Midwest sales grew 0.3% to 102.2, while sales fell 0.9% in the West to 94.7, and dropped 1.7% in the South to 122.1.
“It’s evident in recent months that many of the most overheated real estate markets – especially those out West – are starting to see a slight decline in home sales and slower price growth,” NAR Chief Economist Lawrence Yun said.
“The reason sales are falling off last year’s pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it,” he said.
