Pending home sales decreased 0.8% to an index reading of 109.1 in July, after a downwardly revised 1.3% gain to a 110.0 reading in June, according to a report released Thursday by the National Association of Realtors.
The June reading was originally reported as a 1.5% increase to 110.2.
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index decreased 1.3% from last July, when the index was 110.5.
Regionally, pending sales were mostly lower. The Northeast saw a 0.3% decline to 97.7, while sales dropped 0.7% to 103.3 in the Midwest and sales dropped 1.7% in the South to 123.1. Sales grew 0.6% in the West to 102.3.
“With the exception of a minimal gain in the West, pending sales were weaker in most areas in July as house hunters saw limited options for sale and highly competitive market conditions,” NAR Chief Economist Lawrence Yun said. “The housing market remains stuck in a holding pattern with little signs of breaking through. The pace of new listings is not catching up with what’s being sold at an astonishingly fast pace.”
Economists polled by Thomson Reuters predicted the index would be up 0.5%.