July Pending Home sales fall 7%

July pending home sales fall 7 percent
National Association of Realtors' index is down 16 percent from last July.
September 1 2006: 11:31 AM EDT

WASHINGTON (Reuters) -- Pending sales of U.S. homes plunged 7 percent in July to their lowest level in more than three years, a trade association said on Friday.

The National Association of Realtors' Pending Home Sales Index, based on contracts signed in July, fell to a seasonally adjusted 105.6 in July from a downwardly revised 113.5 in June.


The 7 percent drop was the biggest the index ever posted, the trade group said. The index dates back to January 2001.

The index was down 16 percent in July compared to a year ago.

"Based on recent changes from a year ago, the index shows existing-home sales should continue to ease after a stronger-than-expected decline in July, but are likely to flatten in the months ahead," said David Lereah, NAR's chief economist.

The index includes pending sales of existing single-family units, condominiums and co-ops. A home sale is pending when the contract has been signed but the transaction has not closed.

Pending sales typically close within one or two months of contract signing.

Re: July Pending Home sales fall 7%

maybe this is why rates dropped this week-

Re: July Pending Home sales fall 7%

Yep and I think the prime lending rate will stay level for a while. There are parts of the country experiencing higher inflation, poor job market and extremely high costs of living.

Re: July Pending Home sales fall 7%

yep, I agree with you both.

and - this is a precursor for what home sales will be in a few months, since this measures homes that went into contract.