The Pending Home Sales Index fell 3.7 percent to 110.8 in May from 115 in April and is 0.2 percent lower than in May 2015, the first year-over-year PHSI decline since August 2014, according to the National Association of Realtors.
“With demand holding firm this spring and homes selling even faster than a year ago, the notable increase in closings in recent months took a dent out of what was available for sale in May and ultimately dragged down contract activity,” said Lawrence Yun, NAR chief economist, in a statement. “Realtors are acknowledging with increasing frequency lately that buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market.”
Regionally, the PHSI in the Northeast fell 5.3 percent to 93. The Midwest PHSI dropped 4.2 percent to 108. In the South, pending home sales decreased 3.1 percent to 126.6. Pending home sales in the West decreased 3.4 percent to 102.6.
