Dive Brief:
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Pending home sales dipped 1.4% between July and August, the National Association of Realtors reported Monday.
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Still, the NAR's Pending Home Sales Index rose 6.1% in August from August 2014, marking the 12th consecutive month of year-over-year increases.
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The index saw the most significant decline in the Northeast, where it fell 5.6%, followed by the South, at a decline of 2.2% and the Midwest, at a decrease of 0.4%. The West saw the only rise in the index, by 1.8%.
Dive Insight:
NAR Chief Economist Lawrence Yun said the slight decline was the result of a tight supply of available properties and rising home prices. "Pending sales have leveled off since mid-summer, with buyers being bounded by rising prices and few available and affordable properties within their budget," he said.
The pending home sales dip reinforced predictions that the housing market is somewhat slowing down after a promising first half of 2015. This month, reports have shown housing starts fell 3.0% in August and existing home sales slipped 4.8%. In one bright spot for the month, new home sales rose 5.7% in August.
Yun predicted that home sales in the coming months will keep a steady pace, but cautioned that the possibility of a government shutdown and equity market volatility could keep some potential buyers from taking the plunge into homeownership as they wait for a more stable buying environment.