While the pending home sales index has fluctuated significantly from month to month this year, April's reading is only 0.1 percent lower than January's, which would seem to indicate that conditions are pretty much the same as they were at the start of the year. An unwavering flood of foreclosures, unemployment remaining stubbornly above 9 percent, and tighter lending standards have combined to keep demand from rebounding even as falling prices continue to improve affordability.
A separate report from the NAR, released June 21st, showed that sales of previously owned homes, which account for about 95 percent of the overall housing market, fell to their lowest level in six months in May. Sales were down 3.8 percent to a seasonally adjusted annual rate of 4.81 million. The median price for those homes, meanwhile, was down 4.6 percent on a year-to-year basis. NAR president Lawrence Yun said after the report that it will likely be the low point in sales this year. He indicated that home sales will probably begin to rebound in June, and that the group's index of pending sales could show a 15 percent increase in May.
The pending sales index tracks contracts signed to purchase a home, while the home sales numbers track closings, which typically come a month or two after a contract is signed. Many analysts keep a close eye on the pending index because it is a good indicator of what actual sales figures will look like in the next couple of months.
Search La Jolla Real Estate
