Year over year, however, the index was up 51.7% to 106.2, the NAR said in a press release. The index is a forward-looking indicator of home sales based on contract signings.
“Contract signings are approaching pre-pandemic levels after the big surge due to the lack of sufficient supply of affordable homes,” NAR chief economist Lawrence Yun said. “The upper-end market is still moving sharply as inventory is more plentiful there.”
Looking ahead, Yun expects housing supply to improve as early as this fall.
Regionally, the Northeast’s index fell 12.9% on a monthly basis but surged 96.5% on a yearly one to 85.3, while the Midwest saw the index rise 3.5% month over month and 39.4% year over year to 101.1. The South saw the index fall 6.1% to 128.9, which was up 45.3% from the year-ago period, and the West saw a 2.6% monthly slide and a 57.3% annual gain to 92.0.