Low inventory is being blamed for the third consecutive month of lower pending home sales, according to the National Association of REALTORS® (NAR).
The Pending Home Sales Index fell 0.8 percent in May compared to April and was down 1.7 percent compared to a year ago.
“Monthly closings have recently been oscillating back and forth, but this third consecutive decline in contract activity implies a possible topping off in sales,” Yun said. “Buyer interest is solid, but there is just not enough supply to satisfy demand. Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.”
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