The latest report on home sales activity is in, and the results are somewhat disappointing. Activity in the West, however, was one bright spot.
The Pending Home Sales Index, a forward-looking indicator that is based on contract signings, was 109.4 as of August.
Last month’s pending home sales number represented a decline from the previous month, when the index landed at
110.9.
The National Association of Realtors released the data Monday.
But the index was up compared to the same month last year, when it came in at 103.1. It was the 12th consecutive year-over-year improvement.
The trade group’s chief economist, Lawrence Yun, noted in the report that
despite the month-over-month dip, demand for housing is still stronger than supply — with many markets seeing increased home prices.
But Yun warned that while the current pace of sales is likely to continue in the coming months — a government shutdown or stock market instability could cause prospective homebuyers to put off a purchase.
“Furthermore, adapting to the changes being implemented next month in the mortgage closing process could delay some sales,” Yun said of the implementation of the Consumer Financial Protection Bureau’s new Integrated Disclosure Rule.
A 5.6 percent decline from July in pending home sales was recorded for the Northeast. That was the weakest reading of any region and left the Northeast’s index at 93.3.
At 107.4 as of last month, the pending home sales slipped 0.4 percent in the Midwest.
A 2.2 percent drop from the previous month in the South left that index at 121.5 — the highest index of the four regions.
The West was the only region to see a month-over-month gain: 1.8 percent. The index in the West finished August at 104.9.
