The National Association of Realtors is reporting that overall pending home sales declined 0.5% in May, marking their 2nd lowest level over the past year. The NAR’s Pending Home Sales Index declined to 105.9 in May which they say was due primarily to a supply issue, and not weak demand. A sale is listed as pending when the contract has been signed but the transaction hasn’t closed, though the sale usually is finalized within one or two months of signing.
“Pending home sales underperformed once again in May, declining for the second straight month and coming in at the second lowest level over the past year,” he said. “Realtors® in most of the country continue to describe their markets as highly competitive and fast moving, but without enough new and existing inventory for sale, activity has essentially stalled.” Said Lawrence Yun, the NAR’s chief economist.