NAR released a summary of pending home sales data showing that August’s pending home sales pace is down 2.6 percent from last month and also down 2.6 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.
All four regions showed declines from a year ago. The South had the smallest dip of 1.7 percent followed by the West with a decrease of 2.4 percent. The Midwest had a decline of 3.2 percent. The West had the biggest drop of 4.1 percent.
From last month, all four regions showed declines in sales. The Northeast had the biggest dip of 4.4 percent. The South had a decline of 3.5 percent followed by the Midwest with a dip of 1.5 percent. The West had the smallest decline of 1.0 percent.
The U.S. pending home sales index level for the month was 106.3. July’s data was revised down slightly to 109.1.
In spite of the decline, this is the pending index’s 40th 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.