NAR: Pending Homes Slide As Affordability an Issue
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%.
“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,” NAR Chief Economist Lawrence Yun said.