NAR - Home Sales to Sold is Steady

The level of home sales is expected to show little movement in the months ahead, according to the latest projections by the National Association of Realtors®.

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5.

"Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings," says Lawrence Yun, NAR chief economist. Looking at middle-ground assumptions, existing-home sales are projected to total 5.01 million this year before rising 6.9 percent in 2009 to 5.35 million. After declining an average of 4 to 7 percent this year, home prices are forecast to rise by 2 to 4 percent next year.

Here's how the PHSI fared across the United States:
* Midwest: rose 2.8 percent to 81.6 in July but remains 2.4 percent below a year ago.
* South: unchanged, holding at 93.7, but is 13.4 percent below July 2007.
* Northeast: fell 7.5 percent to 73.6 in July and is 13.2 percent below a year ago.
* West: dropped 10.6 percent to 90.3 but is 6.5 percent higher than July 2007.

While the South is holding steady, a bright spot in Florida is Osceola County (near Orlando) where nearly 9 percent more home sales took place in that county during August 2008 than during August 2007.

REAL Trends Comment: Initial results from REAL Trends Housing Report show that housing closings for August 2008 were ahead of August 2007 in over 10 states including California, Nevada, Arizona and Florida. More soon from the REAL Trends Housing Report.