Pending home sales decreased 0.8% to an index reading of 108.5 in May, after a downwardly revised 1.7% slide to 109.4 in April, according to a report released Wednesday by the National Association of Realtors.
The April reading was originally reported as a 1.3% decrease to 109.8.
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index decreased 1.7% from last May, when the index was 110.4.
Regionally, pending sales were mostly lower. The Northeast saw a 0.8% decline to 96.4, while sales held at a reading of 104.5 in the Midwest. Sales dropped 1.3% in the West to 98.6 and sales dropped 1.2% in the South to 123.4.
“Monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in sales,” NAR Chief Economist Lawrence Yun said. “Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.”
Economists polled by Thomson Reuters predicted the index would be up 0.5%.