Pending home sales fall 1.6% in August

By Ruth Mantell

WASHINGTON (MarketWatch) -- Sales contracts on homes fell 1.6% in August -- a third month of declines -- led by drops in three of four U.S. regions, according to data released Thursday by the National Association of Realtors. NAR cited higher interest rates and prices, among other factors. "Moving forward, we expect lower levels of existing-home sales, but tight inventory in many markets will continue to push up home prices in the months ahead," said Lawrence Yun, NAR's chief economist. Despite the recent drop, the pending-home sales gauge in August was up 5.8% from the year-earlier period. By region, pending home sales in August fell 3.5% in the South, 1.6% in the West and 1.4% in the Midwest. Meanwhile, pending sales rose 4% in the Northeast. A sale is listed as pending when the contract has been signed. Sales are typically finalized within one or two months of signing.

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