Pending home sales fell 0.8% month over month in June and were down 2.8% from 12 months ago, according to a report from the National Association of Realtors.
It is the latest sign that the housing industry’s current slump appears to be getting worse. Month-over-month and year-over-year pending sales were down in the Midwest, South and West regions. Only the Northeast saw monthly pending home sales rise, but year-over-year sales were flat.
Pending home sales are when contracts have been signed but the transactions have not yet closed. However, the sales usually are finalized within one or two months of signing. The level of pending contracts is an early indicator of future home sales.
“The data shows a continuation of small declines in contract signings despite inventory in the market increasing. Pending sales in the Northeast increased incrementally even though home price growth in the region has been the strongest in the country,” said Lawrence Yun, NAR’s chief economist.
The Northeast had a month-over-month increase of 2.1% in pending home sales in June, while year-over-year pending sales were unchanged. In the Midwest, pending sales fell 0.8% between May and June, and 0.9% in the past year.
The worst-performing region was the West, which experienced a 3.9% fall in pending home sales between May and June, and a 7.3% decline in the past year. The South fared better, recording a decline of 0.7% in pending sales month over month, and a 2.9% fall in the past year.
