By Steve Goldstein
WASHINGTON (MarketWatch) — Pending home sales rose 2.4% in June, driven by gains in the West and the South, according to an index released by the National Association of Realtors on Thursday. The pending home sales index rose to 90.9 in June from 88.8 in May and was 19.8% above June 2010 levels, which was the low point following the expiration of the home buyer tax credit. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Cancellations led to a decline in the June existing-home sales report despite the strength in the May pending home sales report. “Though a higher-than-normal cancellation rate can hold back final closing figures, it could well be that some past cancellations are nothing more than delayed buying decisions rather than outright cancellations,” said Lawrence Yun, NAR chief economist.
Note from Terry – We are also seeing a similar trend in Eagle County. So far in July, we have 87 properties under contract. In July, 2010, we had a total of 67 properties go under contract. Let’s hope this increase in under contract properties continues and results in more sales.