Pending home sales have now fallen on an annual basis for eight consecutive months in August, according to the latest report from the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 1.8% in August to 104.2, down from 106.1 in July. With August’s decline, the index is remains 2.3% down.
NAR Chief Economist Lawrence Yun said that low inventory continues to contribute to the housing market slowdown.
“With prices having risen so quickly, many consumers were deciding to wait to list their homes hoping to see additional price and equity gains,” Yun continued. “However, with indications that buyers are beginning to pull out, price gains are going to decelerate, and potential sellers are considering that now is a good time to list and bring more properties to the market.”
Read more in Housing Wire.