The National Association of Realtors' (NAR) Pending Home Sales Index (PHSI) declined 2.6% in June to 75.7 – down from an upwardly revised level of 77.7 in May. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
‘There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve,’ says Lawrence Yun, NAR's chief economist. ‘Over the short term, inventory will look high relative to home sales. However, since home prices have come down to fundamentally justifiable levels, there isn't likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices.’
The PHSI dropped the most in the Northeast, falling 12.2% in June. The South saw the greatest improvement in pending transactions, with its PHSI rising 3.7%.
SOURCE: National Association of Realtors