Pending Sales RISE !!

Following a sharp drop in the months immediately after expiration of the home buyer tax credit, pending home sales have modestly risen, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1 percent below July 2009 when it was 98.1. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, cautioned that there would be a long recovery process. "Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," he said. "But the recovery looks to be a long process. Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity."

Yun added, "Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed's very accommodative monetary policy. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget."

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  • September 15 2010 - US
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Answers (5)

Good posting Jenny,
In Boston, we have seen the year over year sales go up significantly for, both, single family homes and condos.   Let's hope this is a sign!

Cheers,
Bill P
  • September 15 2010
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yes the rose by 5.2%, BUT the prior months number was revised downwards by 2.7%... so actually, a better comment would be

Pending sales stay terribly far down after credit ends...
  • September 15 2010
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Hmm....Check out the charts here...they are all pointing one way...down...

Its hard for me to believe any NAR data, though, what else are they going to say except the sky is always shining....

Honestly, value are not going to pick up without jobs, and until then there is no reason to expect continued appreciation.

  • September 15 2010
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Profile picture for sunnyview
I hope the the market will stabilize and get heathy again. I'm just not sure that the NAR is the most accurate source for data based on past performance.
  • September 15 2010
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Profile picture for wetdawgs
NAR has always had put a positive spin on things.  (It reminds me of one of my favorite books "how to lie with statistics".)    What are the other economists saying?  

Here's a link to the original article.  
  • September 15 2010
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