Pending home sales declined in June but marked 14 consecutive months of year-over-year gains, according to the NATIONAL ASSOCIATION OF REALTORS^® (NAR).

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, slipped 1.4 percent in June from a downwardly revised May but is 9.5 percent higher than June 2011.  The data reflect contracts but not closings.

Lawrence Yun, NAR chief economist, said inventory shortages are a factor.  “Buyer interest remains strong but fewer home listings mean fewer contract signing opportunities,” Yun said.  “We’ve been seeing a steady decline in the level of housing inventory, which is most pronounced in the lower price ranges popular with first-time buyers and investors.”

Reginally, the PHSI in the Northeast fell 7.6 percent to 76.6 in June but is 12.2 percent higher than a year ago. 

To read the NAR press release, click here.