The Pending Home Sales Index (PHI) indicates September’s numbers fell 2.3 percent from the downwardly revised August 109.3 level, marking the second consecutive month it has fallen, according to jewocity. Analysts had expected a modest increase of 0.6 percent. However, the index was up three percent over September of 2014.

In another indicator of slippage in the housing market, sales of newly built homes dropped 11.5 percent last month, as MHProNews reported Oct. 27, although existing home sales rose five percent and housing starts increased 6.5 percent in September. Analysts had expected a modest drop of 0.6 percent

NAR Chief Economist Lawrence Yun said, “There continues to be a dearth of available listings in the lower end of the market for first-time buyers, and Realtors in many areas are reporting stronger competition than what’s normal this time of year because of stubbornly low inventory conditions.”

The Northeast had the largest PHI drop with a decline of four percent. Pending home sales fell 2.6 percent in the South and 2.5 percent in the Midwest. The West was nearly flat with sales down 0.2 percent. ##

(Photo credit: Associated Press/Paul Sakuma)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.