U.S. Pending Home Sales Slip in June

A forward-looking indicator of home sales slipped in June, but remained well above year-ago levels, a sign the housing market is stabilizing.

The National Association of Realtors said Wednesday its index of pending home sales fell by 1.8% to a seasonally-adjusted 110.3, the lowest level since March, but 8.2% higher than June 2014.

The index tracks contract signings, which usually close within two months.

The May index was revised down to 112.3 from a previously reported 112.6. May's value was still the highest of the year.

Economists surveyed by The Wall Street Journal had expected a 1% rise in June.

"Low inventories in many markets reduced choices and pushed prices above some buyers' comfort level," Lawrence Yun, chief economist for the Realtors' group, said.

The pace of completed existing-home sales increased 3.2% last month from May to a seasonally adjusted rate of 5.49 million, the strongest since February 2007, the group said last week.

Pending home sales rose 0.4% in the Northeast and 0.5% in the West from May. They fell by 3% in the Midwest and South.

News Corp, owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for the National Association of Realtors.

Write to Anna Louie Sussman at [e-mail]

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