![](\"https:\/\/www.floridarealtors.org\/sites\/default\/files\/styles\/full_width_main_image\/public\/page\/image\/2021-08\/gettyimages-597273811.jpg?h=236fbb67&itok=bsCYvHmM\")
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Year-to-year contract signings declined 8.5%. NAR Chief Economist Lawrence Yun says the market may be cooling a bit, but there\u2019s still not enough supply to match demand \u2013 yet \u201cinventory is slowly increasing\u201d and buyers should \u201csee more options in the coming months.\u201d<\/span><\/span><\/p>\n<\/div>\n WASHINGTON \u2013 Pending home sales dipped modestly in July for two consecutive months of declines, according to the National Association of Realtors\u00ae (NAR). Only the West region registered a month-over-month gain in contract activity; the other three U.S. regions in the study saw drops. Year-to-year, all four regions decreased.<\/span><\/span><\/p>\n The Pending Home Sales Index (PHSI) \u2013 a forward-looking indicator of home sales based on contract signings \u2013 declined 1.8% to 110.7 in July. Year-over-year, signings fell 8.5%. An index of 100 is equal to the level of contract activity in 2001.<\/span><\/span><\/p>\n \u201cThe market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers,\u201d says Lawrence Yun, NAR\u2019s chief economist.<\/span><\/span><\/p>\n \u201cThat said, inventory is slowly increasing and home shoppers should begin to see more options in the coming months,\u201d Yun adds. \u201cHomes listed for sale are still garnering great interest, but the multiple, frenzied offers \u2013 sometimes double-digit bids on one property \u2013 have dissipated in most regions.\u201d However, \u201ceven in a somewhat calmer market, a number of potential buyers are still choosing to waive appraisals and inspections.\u201d<\/span><\/span><\/p>\n As of July, 27% of buyers bypassed appraisal and inspection contingencies, in most cases to accelerate the homebuying process, Yun says.<\/span><\/span><\/p>\n July pending home sales regional breakdown<\/strong>: Month-over-month, the Northeast PHSI fell 6.6% to 92.0 in July, a 16.9% decrease from a year ago. In the Midwest, the index dropped 3.3% to 104.6 last month, down 8.5% from July 2020.<\/span><\/span><\/p>\n\n