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Pending home sales fall

By Polyana da Costa · Bankrate.com
Thursday, September 27, 2012
Posted: 4 pm ET

Fewer buyers signed contracts to buy homes in August compared to July, according to the latest pending home sales report by the National Association of Realtors.

NAR's Pending Home Sales index declined 2.6 percent to 99.2 in August, but it is 10.7 percent above August 2011. The decline comes after contract activity had reached its highest levels since April 2010, when buyers rushed to beat the deadline for homebuyer tax credit.

Could the latest numbers be a sign that the recovering housing market is softening again?

NAR's chief economist Lawrence Yun says he is "not concerned at all."

He says volatility in monthly data is normal.

"If one looks at the buyers' interest, that remains very strong in our Realtor's survey," he says in a video interview posted on the Realtors' website.

Yun says the areas with declining contract signings actually are areas he characterizes as "hot markets." Those areas include Phoenix, Las Vegas and South Florida. He claims there is a shortage of homes for sale in some parts of the country.

Home prices will continue to rise through the rest of the year and in 2013, he says. He expects prices to rise 5 percent in 2012 and in 2013.

"We could easily have 10 percent, 12 percent appreciation this time next year," he says.

Do you think Yun is being too optimistic? Are you feeling the housing recovery yet?

Follow me on Twitter @Polyanad.

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3 Comments
Max Love
September 30, 2012 at 10:10 am

To think that someone get paid to say this, I guess it is good work when you can get it. The hot areas are under water and on life support.

Mike
September 28, 2012 at 3:52 pm

I have found a program that can be helpful to folks who want a home loan but have credit score issues. It's unique and is helping people qualify and get loans.

Ray
September 28, 2012 at 9:10 am

Yun represents realtors. Enough said.