Contracts to purchase previously owned homes rose less than forecast in June as a lack of supply and rising prices offset the benefits from
Pending home sales gauge rose 0.2% after falling 3.7%
The leveling off in pending home sales comes on the heels of reports showing existing-home sales jumped in June to its highest level since 2007 and the strongest new-home demand in eight years.
The Realtor's group said last week that sales have probably peaked for the year as prospective buyers don't have enough homes from which to choose, forcing up property values. That's mitigated the positive influence of mortgage rates that are close to record lows.
"Until inventory conditions markedly improve, far too many prospective buyers are likely to run into situations of either being priced out of the market or outbid on the very few properties available for sale," NAR chief economist Lawrence Yun said in a statement.
"With only the Northeast region having an adequate supply of homes for sale, the reoccurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets."
Purchases fell 1.3% in the West and 0.6% in the South.