Pending Home Sales Slip in June
Headwinds (supply shortages, flat wages, and tight credit) impede full sales potential.
After three consecutive months of gains, pending home sales slowed in June missing expectations for a 0.5% increase, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, declined 1.1 percent to 102.7 in June from 103.8 in May, and is 7.3 percent below June 2013 (110.8). Despite June’s decrease, the index remains above 100 – considered an average level of contract activity – for the second consecutive month after failing to reach the mark since November 2013 (100.7).