Pending home sales fell 1.8% in July to 110.7 on the National Association of Realtors Pending Home Sales Index (PHSI). Compared with July 2020, contract signings fell 8.5%.
“The market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers,” stated Lawrence Yun, NAR’s chief economist. “That said, inventory is slowly increasing, and home shoppers should begin to see more options in the coming months.”
Regionally, contract signings fell 6.6% in the Northeast, 3.3% in the Midwest and 0.9% in the South. Pending home sales in the West increased 1.9%. PHSI readings of 100 are equal to the level of contract activity in 2001, according to NAR.
The full NAR report can be found here.
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