Pending home sales rise in July; Down 19 percent from the year before

Dennis Norman

After hitting all-time low in June, pending home sales increase 5.2 percent in July

The National Association of REALTORS Pending Home Sales Index for July shows an increase of 5.2 percent in the index in July (seasonally adjusted) which is 19.1 percent below July 2009.

Here are highlights from the report:

  • July’s pending home sales index (seasonally adjusted) was 79.4 (the index is based upon 100.0 being equal to the average level of sales activity in 2001 which we could call the last “normal” year) which is the third lowest level the index has hit since NAR began the index in 2001.
  • July’s not-seasonally adjusted index index was 86.0, a 7.2 percent decrease from June and a 20.1 percent decrease from a year ago.
  • All regions in the U.S. saw month-over-month gains and year-over-year declines in pending home sales.

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.”

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