Pending home sales decreased 2.5% to an index reading of 106.0 in January, after a revised 0.9% increase to 108.7 in December, according to a report released Monday by the National Association of Realtors.
Economists polled by Thomson Reuters predicted the index would be up 0.5%
The December increase was first reported as 0.1% to 106.8.
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 1.4% from last January, when the index was 104.5.
Regionally, pending sales were mostly lower. The Northeast saw a 3.2% drop to 94.5, while sales fell 4.5% in the West to 96.5. In the South, sales rose 0.3% to 121.1, and sales were off 4.9% to 101.1 in the Midwest.
"While January's blizzard possibly caused some of the pullback in the Northeast, the recent acceleration in home prices and minimal inventory throughout the country appears to be the primary obstacle holding back would-be buyers," NAR Chief Economist Lawrence Yun said. "Additionally, some buyers could be waiting for a hike in listings come springtime."
