A frustratingly persistent shortage of inventory in the market for pre-owned single-family properties helped drive down pending sales for the third consecutive month.
On a seasonally adjusted basis, the U.S. Pending Home Sales Index was a preliminary 108.5 for the month of May 2017.
The index, a forward-looking indicator based on contract signings, slipped nearly a percent compared to the downwardly revised level for the preceding month.
Those details were reported Wednesday by the National Association of Realtors.
Sales have slowed each month since February, when the index was 112.3.
Pending home sales have declined versus
the downwardly revised 110.4 index level as of one year previous.
“Monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in sales,” NAR Chief Economist Lawrence Yun said in the report. “Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.”
A 1.3 percent month-over-month decline in the West was the biggest of any region and left the index there at 98.6. The index fell 1.2 percent in the South to 123.4, and the Northeast’s index slipped 0.8 percent to 96.4.
Only the Midwest didn’t experience a decline, with its index remaining at 104.5.
