WASHINGTON (7/29/14)--For the first time in four months pending-home sales have stepped back, dropping 1.1% in June, according to data released by the National Association of Realtors Monday.
The Northeast and South bore the brunt of declines, which were somewhat offset nationally by modest gains in pending sales in the Midwest and West. Overall, the national index sits 7.3% lower than levels seen this time last year (Economy.com July 28).
The pullback is consistent with recent weaknesses in other housing indicators, such as new-home sales and mortgage purchase applications, according to Brent Campbell, Moody's analyst (Economy.com).
"The bounce-back from weather-related weakness in the spring provided some lift earlier in the year, but many potential homebuyers have yet to regain confidence lost during the depths of the recent housing crisis," Campbell said.
By region, pending-home sales fell in the Northeast by 2.9% and in the South by 2.4%. The Midwest posted a 1.1% gain and the West recorded a 0.2% uptick.
Across all regions, however, pending home sales are down on a year-over-year basis, with the West nearly 17% behind last year's pace.