Pending sales of existing homes in June as measured by signed contracts fell 1.9% from May, according to the National Association of Realtors.
Sales were also down 1.9% compared with June 2020. Pending sales are a forward-looking indicator of closed sales in one to two months.
“Pending sales have seesawed since January, indicating a turning point for the market,” said Lawrence Yun, Realtors’ chief economist. “Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat.”
Prices in May were up nearly 17% compared with May 2020, according to the latest reading from the S&P Case-Shiller national home price index. That is the largest annual gain on record. Prices in June could very well top that, given the still tight supply of homes for sale, especially on the low end of the market.