Contracts to buy previously owned U.S. homes unexpectedly fell in June as fewer properties came on the market, an industry group said on Thursday, pointing to weak home resales in July.
It was the latest sign that the housing market remains spotty.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in June, slipped 1.4 percent to 99.3. May's reading was revised down to show a 5.4 percent increase from a previously reported 5.9 percent.
A reading of 100 is considered healthy. The index is 9.5 percent higher than it was a year ago. The index bottomed at 75.88 in June 2010 after a homebuyers' tax credit expired.
Economists polled by Reuters had expected signed contracts, which become sales after a month or two, to rise 0.2 percent.
"Buyer interest remains strong but fewer home listings mean fewer contract signing opportunities," said NAR chief economist Lawrence Yun.
"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."
Contracts in the Northeast fell 7.6 percent in June and slipped 0.4 percent in the Midwest. In the South, contracts declined 2.0 percent.
The West saw a 2.6 percent increase in contracts in June.
The report comes a day after the Commerce Department said new single-family home sales in June fell by the most in more than a year and prices resumed their downward trend, suggesting a setback for the budding housing market recovery.
The housing market had been improving in recent months, with new home construction in June hitting its highest level since October 2008 and confidence among home builders this month touching its best level in more than 5 years.
Reuters and The Associated Press contributed to this report.
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