NAR: Pending Home Sales Index Drops 2.4% to 108.5 in August

Pending home sales decreased 2.4% to an index reading of 108.5 in August, after a revised 1.2% gain to 111.2 in July, according to a report released Thursday by the National Association of Realtors.

The July index was first reported as up 1.3% to 111.3.

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

Year-over-year the pending homes sales index increased 1.4% from last July, when the index was 109.8.

Regionally, pending sales were mostly higher. The Northeast saw a 0.8% gain to 96.8, while sales fell 2.9% to 105.8 in the Midwest. Sales soared 7.3% in the West to 108.7 and sales grew 0.8% in the South to 123.9.

"Contract activity slackened throughout the country in August except for in the Northeast, where higher inventory totals are giving home shoppers greater options and better success signing a contract," NAR Chief Economist Lawrence Yun said. "In most other areas, an increased number of prospective buyers appear to be either wavering at the steeper home prices pushed up by inventory shortages or disheartened by the competition for the miniscule number of affordable listings."

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