August 2009 Pending Sales Data

Lawrence Yun, NAR chief economist, discusses the statistical data up to August 2009 and explains what the information is telling us about the market.

Key Points:
Pending sales are up all over the country. A monthly increase of 6.4% and an annual increase of 12.4%.

The disconnect between pending home sales figures and existing home sales figures may be the result of a greater incidence of contracts falling through. When that buyer then places an offer on another home, the figures represent two pending home sales but only one existing home sale counted.

He also discusses the government removing the income limitation for the first time home buyer tax credit. Yun feels that if Congress extends the tax credit to ALL home buyers the economic growth generated by the increase in home sales would offset the cost.