NAR released a summary of pending home sales data showing that July’s pending home sales pace is down 0.8 percent from last month and also down 1.3 percent from a year ago.
Pending sales represent homes that have a signed contract to purchase on them but have yet to close. They tend to lead Existing Home Sales data by 1 to 2 months.
Three of the four regions showed declines from a year ago. The Northeast had the only gain of 2.4 percent. The South had the smallest dip of 0.2 percent followed by the Midwest with a decrease of 2.8 percent. The Midwest had the biggest decline of 3.4 percent. The West had the biggest drop of 4.0 percent.
From last month, three of the four regions showed declines in sales. The West was the only region to show an increase of 0.6 percent. The South had the biggest dip of 1.7 percent. The Midwest had a decline of 0.7 percent. The Northeast had the smallest decline of 0.3 percent.
The U.S. pending home sales index level for the month was 109.1. June’s data was revised down slightly to 110.0.
In spite of the decline, this is the pending index’s 39th consecutive month over the 100 level.
The 100 level is based on a 2001 benchmark and is consistent with a healthy market and existing home sales above the 5 million mark.