Monthly pending home sales fell by 2.4% in August according to the National Association of Realtors (NAR). On an annual basis, pending home sales were down by 0.2% compared to August 2015. All regions experienced a drop in sales, except the Northeast, where sales rose by 1.3% compared to July and 5.9% compared to August 2015 amid a greater number of homes listed for sale.
The decline in home sales can be attributed to lower supply noted the report. New home starts were down by 6% between August and July, while the supply of homes for sale has declined for 15-straight months. However, the scarce supply of homes for sale has resulted in an annual 5.1% rise in home prices, according to another report by S&P CoreLogic Case-Shiller.
Annual Change in Home Sales
- Northeast Home Sales: +5.9% from Aug. 2015
- Midwest Home Sales: -1.7% from Aug. 2015
- South Home Sales: -1.5% from Aug. 2015
- West Home Sales: -0.6% from Aug. 2015
Monthly Change in Home Sales
- Northeast Home Sales: +1.3% from July 2016
- Midwest Home Sales: -0.9% from July 2016
- South Home Sales: -3.2% from July 2016
- West Home Sales: -5.3% from July 2016