NAR: Pending Home Sales Index Climbs 0.2% to 111.0 in June

Pending home sales increased 0.2% to an index reading of 111.0 in June, after an unrevised 110.8 reading in May, according to a report released Wednesday by the National Association of Realtors.

Economists polled by Thomson Reuters predicted the index would be up 1.8%

The May decrease was first reported as 3.7% to 110.8.

An index of 100 is equal to the average level of contract activity during 2001.

Year-over-year the pending homes sales index increased 1.0% from last June, when the index was 109.9.

Regionally, pending sales were mixed. The Northeast saw a 3.2% gain to 96.0, while sales grew 0.8% to 108.9 in the Midwest. Sales fell 1.3% in the West to 101.3 and sales slid 0.6% in the South to 125.9.

"With only the Northeast region having an adequate supply of homes for sale, the reoccurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets, leading to the last two months reflecting a slight, early summer cooldown after a very active spring," NAR Chief Economist Lawrence Yun said. "Unfortunately for prospective buyers trying to take advantage of exceptionally low mortgage rates, housing inventory at the end of last month was down almost 6 percent from a year ago, and home prices are showing little evidence of slowing to a healthier pace that more closely mirrors wage and income growth."

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER