KEY POINTS
  • A monthly index measuring signed contracts to buy existing homes fell 2.6 percent in August compared to July.
  • That is the fifth drop in the past six months and below expectations.
  • A drop in supply and spike in home prices are largely to blame for the change, but two devastating hurricanes only added to the weakness.

It is no longer a blip, but a trend. Home sales are weakening, and they are not expected to improve anytime soon.

A monthly index measuring signed contracts to buy existing homes fell 2.6 percent in August compared to July. That is the fifth drop in the past six months and below expectations. The National Association of Realtors' so-called pending home sales index is now down the same amount compared to August of 2016, hitting the lowest level since January of that year.