Fewer homebuyers signed contracts to purchase existing homes in August, per the National Association of Realtors' seasonally adjusted index.
Pending home sales decreased 1.8 percent in the eighth month of 2018, and sales fell 2.3 percent annually, the slowest pace since January, and making August the fourth month in a row of declining sales, CNBC reports. NAR chief economist Lawrence Yun says, "The greatest decline occurred in the West region where prices have shot up significantly, which clearly indicates that affordability is hindering buyers and those affordability issues come from lack of inventory, particularly in moderate price points."
Pending home sales dropped 5.9 percent in the West month to month and were down a striking 11.3 percent compared with August 2017. Prices in the West, however, are still higher than a year ago, but the gains are shrinking. Prices usually lag sales. Sales fell 1.3 percent in the Northeast monthly and were down 1.6 percent annually. In the Midwest, sales fell 0.5 percent monthly and 1.1 percent annually. In the South, sales were down 0.7 percent monthly but were 1.3 percent higher than a year ago.
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