NAR: Pend­ing Homes Slide As Af­ford­abil­ity an Is­sue

The Bond Buyer - - Market News - — Gary E. Siegel

Pend­ing home sales slipped 0.7% to an in­dex read­ing of 106.2 in July, af­ter a re­vised 1.0% gain to 107.0 in June, ac­cord­ing to a re­port re­leased Wed­nes­day by the Na­tional As­so­ci­a­tion of Real­tors.

An in­dex of 100 is equal to the av­er­age level of con­tract ac­tiv­ity dur­ing 2001.

June’s fig­ure was first re­ported as a 0.9% climb to 106.9.

Year-over-year the pend­ing homes sales in­dex de­creased 2.3% from last July, when the in­dex was 108.7. This is the seventh con­sec­u­tive month sales have dropped on an an­nual ba­sis. IFR Markets pre­dicted the in­dex would be up 0.4%.

“The rea­son sales are fall­ing off last year’s pace is that mul­ti­ple years of in­ad­e­quate sup­ply in markets with strong job growth have fi­nally driven up home prices to a point where an in­creas­ing num­ber of prospec­tive buy­ers are un­able to af­ford it,” NAR Chief Economist Lawrence Yun said.

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