Pending home sales decreased 1.8% to an index reading of 110.3 in June, after a revised 0.6% increase to 112.3 in May, according to a report released Wednesday by the National Association of Realtors.
The May increase was first reported as 0.9% to 112.6.
Economists polled by Thomson Reuters predicted the index would be up 1.0%
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 8.2% from last June, when the index was 101.9.
Regionally, pending sales were mixed. The Northeast saw a 0.4% gain to 94.3, while sales rose 0.5% in the West to 104.4. In the South, sales fell 3.0% to 123.5, and sales decreased 3.0% to 108.1 in the Midwest.
"Competition for existing houses on the market remained stiff last month, as low inventories in many markets reduced choices and pushed prices above some buyers' comfort level," NAR Chief Economist Lawrence Yun said. "The demand is there for more sales, but the determining factor will be whether or not some of these buyers decide to hold off even longer until supply improves and price growth slows."
Prices have risen and a better economy has allowed "some homeowners the incentive and financial capability to sell and trade up or down," Yun said. "Unfortunately, because nearly all of these sellers are likely buying another home, there isn't a net increase in inventory. A combination of homebuilders ramping up construction and even more homeowners listing their properties on the market is needed to tame price growth and give all buyers more options."
