Pending homes fall in June, supply blamed

WASHINGTON Thu Jul 26, 2012 10:07am EDT

A foreclosed home is seen for sale in Santa Ana, California, May 24, 2011. REUTERS/Lucy Nicholson

A foreclosed home is seen for sale in Santa Ana, California, May 24, 2011.

Credit: Reuters/Lucy Nicholson

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WASHINGTON (Reuters) - Contracts to buy previously owned U.S. homes unexpectedly fell in June as fewer properties came on the market, an industry group said on Thursday, pointing to weak home resales in July.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in June, slipped 1.4 percent to 99.3. May's reading was revised down to show a 5.4 percent increase from a previously reported 5.9 percent.

Economists polled by Reuters had expected signed contracts, which become sales after a month or two, to rise 0.2 percent.

"Buyer interest remains strong but fewer home listings mean fewer contract signing opportunities," said NAR chief economist Lawrence Yun.

"We've been seeing a steady decline in the level of housing inventory, which is most pronounced in the lower price ranges popular with first-time buyers and investors."

Pending home sales were up 9.5 percent in the 12 months to June. Home resales fell sharply in June.

Contracts in the Northeast fell 7.6 percent in June and slipped 0.4 percent in the Midwest. In the South, contracts declined 2.0 percent.

The West saw a 2.6 percent increase in contracts in June.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

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Comments (6)
gam32839 wrote:
BREAKING NEWS: June pending home sales up 9.5 percent. Here “Pending home sales were up 9.5 percent in the 12 months to June. Home resales fell sharply in June”. Speechless about REUTERS.

Jul 26, 2012 10:13am EDT  --  Report as abuse
soulice wrote:
More than likely, all of those who are not underwater and are interested in selling have done so. Leaves those people who are underwater and struggling to make do and they can not afford to sell at a loss and make up the difference.

Jul 26, 2012 10:38am EDT  --  Report as abuse
Publius1791 wrote:
Once again, the banking/financial services industry is dealing the cards in its favor. By holding significant numbers of foreclosed properties off the market they can manipulate the housing market to their advantage.

Forget about the millions of displaced homeowners, those under water and the economy in general – the banks/financial services have bought their way into controlling Congress and, therefore, will continue to do as they please.

The rest of the economy, and the average citizen, be damned. And don’t be surprised to see these foreclosed properties turned into a rental bonanza by the banks!

Jul 26, 2012 11:45am EDT  --  Report as abuse
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