WASHINGTON (AP) – Fewer people signed contracts to buy homes in July, the fourth decline in the past five months.
The National Association of Realtors says that its pending home sales index fell 0.8 percent in July to 109.1. The index has slipped 1.3 percent over the past 12 months.
The decline suggests that the shortage of homes listed for sale is beginning to stall home-buying. The dwindling number of properties for sale is causing prices to rise faster than wages, hurting affordability. Just 1.92 million existing homes were listed for sale in July, a 9 percent decline over the past 12 months.
Pending sales contracts are a barometer of future purchases. Sales are typically completed a month or two after a contract is signed.