NAR released a summary of pending home sales data showing that July’s pending home sales pace was down 0.7 percent last month and fell 2.3 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.
All four regions showed declines from a year ago. The South had the smallest dip in pending sales of 0.9 percent. The West had the biggest drop in sales of 5.8 percent. The Northeast fell 2.3 percent followed by the Midwest with a decline of 1.5 percent.
From last month, two of the four regions showed inclines in sales. The Midwest region had the smallest gain of 0.3 percent followed by the Northeast, which rose 1.0 percent. The South had a decline of 1.7 percent followed by the West with a drop of 0.9 percent.
The U.S. pending home sales index level for the month was 106.2. June’s data was revised up to 107.0.
In spite of the decline, this is the pending index’s 51st 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.