Finally some good news from the National Association of Realtors, honest.
The trade group said today that pending existing home sales increased 7.4 percent in August from a month earlier, and were up 8.8 percent compared to August 2007.
NAR senior economist Lawrence Yun attributed the gain to improved affordability and a loosening of credit after the government takeover of Fannie and Freddie, though distressed sales are probably playing a key role.
Home prices continue to fall in areas that have seen intense foreclosure activity, driving up sales despite relative weakness in other areas of the country.
That’s apparent, with pending home sales up sharply in foreclosure hot spots like California, Nevada, Arizona, and Florida.
The PHSI increased 18.4 percent in the West and is up 37.8 percent compared to a year earlier, an area where home prices have plummeted annually.
In other regions, the gains were much more modest, ranging between 2.3 and 8.4 percent, with year-over-year numbers actually down in the South.
A recent report noted that foreclosure resales made up nearly half of Southern California resales in July as the median price paid fell a record 34 percent annually.
And home sales might improve further, considering the fact that 1 in 6, or roughly 12 million households, are now underwater on their mortgages, according to Moody’s Economy.com.
The forward-looking index based on purchase contracts signed in August is now at its highest level since July 2007, not that that’s saying much.
Related Topics:
