Pending home sales in August dipped 1.4 percent to 109.4 from 110.9 in July, but are still 6.1 percent above August 2014, according to the National Association of Realtors.
Despite the decrease, demand continues to outpace housing supply and elevate price growth in markets across the country, said Lawrence Yun, NAR chief economist, in a statement.
“Pending sales have leveled off since mid-summer, with buyers being bounded by rising prices and few available and affordable properties within their budget,” he said. “Even with existing-housing supply barely budging all summer and no relief coming from new construction, contract activity is still higher than earlier this year and a year ago.”
Sales in the coming months should maintain the current pace, but the possibility of a government shutdown and instability in equity markets could cause homebuyers to put off closing on a home for the time being, Yun said.
Regionally, the Pending Home Sales Index in the Northeast dropped 5.6 percent to 93.3. The PHSI in the Midwest decreased by 0.4 percent to 107.4. Pending home sales in the South fell 2.2 percent to 121.5. The West saw its PHSI increase 1.8 percent to 104.9.
The PHSI data can be viewed online.
