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U.S. pending home sales fell by almost 4% in May, the National Association of Realtors reported Wednesday, the first drop since August 2014.
“Realtors are acknowledging with increasing frequency lately that buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market,” Says NAR Chief Economist Lawrence Yun in a press release that the dip in pending sales, experienced by most of the country, was a direct result of a busy spring home buying season that left less inventory for May shoppers.
U.S. home-purchase contract signings slipped 3.7% to 110.8, down from 115.0 in April, and 0.2% to 111.0 year-over-year. The May PHSI fell 5.3% in the Northeast to 93.0 and 4.2% to 108.0 in the Midwest. The PHSI also declined in the South, 3.1% to 126.6, and 3.4% to 102.6 in the West. Of all the regions, the South is the only one to hang on to gains made in the last year, a thin 0.6%.