NAR released a summary of pending home sales data showing that May’s pending home sales pace was down 0.5 percent last month and fell 2.2 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 South was the only region without a decline and sales were flat. The Northeast had the biggest drop in sales of 4.8 percent. The West fell 4.1 percent followed by the Midwest with a decline of 2.5 percent.
From last month, three of the four regions showed inclines in sales. The South region was the only region with a drop in sales of 3.5 percent. The West rose 0.6 percent followed by the Northeast with a gain of 2.0 percent. The Midwest had the largest increase of 2.9 percent.
The U.S. pending home sales index level for the month was 105.9. April’s data was revised up to 106.4.
In spite of the decline, this is the pending index’s 49th 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.