Home Sales Stabilizing

Pending home sales are up according to National Association of Realtors (NAR). The Pending Home Sales Index in August rose 4.3% from July, but still low compared to August 2005. Pending index is sales of existing homes when a contract has been signed but the transaction has not closed, until finalized within one to two months of signing. David Lereah, NAR's chief economist indicates the index is a hopeful sign, that sales should stabilize over the next two months, although a minor decline is possible. With fewer new listings coming on the market we should see draw down on inventory early next year and prices will rise, but at a slower pace than historic norms. Courtesy of Planet Realtor 10/3/06.