The Pending Home Sales Index (PHSI) dropped by 1.8 percent to 104.2 in August from 106.1 in July. On an annualized measurement, the PHSI is down by 2.3 percent. On a regional basis, the PHSI in the Northeast dropped 1.3 percent to 92.7 and the Midwest index dipped by 0.5 percent to 101.6. Pending home sales in the South were down 0.7 percent to an index of 121.3 in August, while the index in the West slid by 5.9 percent to 89.1.
“Pending home sales continued a slow drip downward, with the fourth month over month decline in the past five months,” said NAR Chief Economist Lawrence Yun. “Contract signings also fell backward again last month, as declines in the West negatively impacted overall activity. The greatest decline occurred in the West region where prices have shot up significantly, which clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points.”