According to The Associated Press, limited supplies of homes for sale held back possible sales growth.
Numbers from the NAR reveal that the seasonally adjusted pending home sales index fell by 1.8 percent to 110.3. However, strong demand from potential buyers pushed the index up 8.2 percent year-over-year.
Demand has been strong due to low mortgage rates and robust job growth in the last five months. But as more homes get taken off the market, supply can’t meet the demands to cater to fast-growing demand.
The decline may be a sign of peaking after steady growth for much of the year, the article says.