Pending home sales show some stability

Despite the recent bleak housing news following the expiration of the first-time homebuyer tax credit, pending home sales are showing some stability, according to a National Association of Realtors report released today. The NAR’s Pending Home Sales Index, which calculates the number of signed contracts nationwide, climbed 5.2 percent to 79.4 percent in July, compared to June. Still, July’s index reading was 19.1 percent below the same month a year earlier, leading Lawrence Yun, NAR’s chief economist, to believe that a full recovery may be a long way off. “The recovery looks to be a long process,” Yun said. “For those who bought at or near the peak several years ago… it may take over a decade to fully recover lost equity.” See Yun discuss the housing market above. TRD