For the fourth month in a row, pending home sales were down nationally in February, according to new numbers out from the National Association of Realtors.
The Pending Home Sales Index dropped 4.1 percent in February. Year-over-year, transactions dropped 5.4 percent. Three of the four major U.S. regions saw contract signings fall month-over-month, with the Northeast being the only area that reported an increase.
“Pending transactions diminished in February mainly due to the low number of homes for sale,” said Lawrence Yun, NAR’s chief economist. “Buyer demand is still intense, but it’s as simple as ‘one cannot buy what is not for sale.’
“It is still an extremely competitive market, but fast-changing conditions regarding affordability are ahead,” he continued. “Consequently, home sellers cannot simply bump up prices in the upcoming months, but need to assess the changing market conditions to attract buyers.”
The index in the West slid 5.4 percent in February, down 5.3 percent from a year prior.