After a sharp drop in the months following the home buyer tax credit expiration, pending home sales have risen, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator, rose 5.2 percent in July, but remains 19.1 percent below July 2009 numbers, according to NAR. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said in an NAR interview that there would be a long recovery process. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said.

Yun said in an NAR interview that affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy. "The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget,” Yun said.

More more information, go to www.realtor.org.

U.S. existing-home sales were significantly lower in July, following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors® (NAR).

U.S. existing-home sales fell 27.2 percent in July, and are 25.5 percent below July 2009 numbers. Sales are at the lowest level since the total existing-home sales series launched in 1999, according to NAR. An NAR survey showed that first-time buyers purchased 38 percent of homes in July, down from 43 percent in June.

Lawrence Yun, NAR chief economist, said a slow sales pace will likely continue for a few additional months, according to NAR. "However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs," Yun said.

Regionally, existing-home sales in the Northeast fell 29.5 percent and are 30.3 percent lower than July 2009 numbers, according to NAR. Midwest existing-home sales fell 35 percent in July are are 33.3 percent lower than July 2009 numbers. Existing-home sales in the South dropped 22.6 percent and are 19.8 percent lower than a year ago. In the West, existing-home sales fell 25 percent and are 23 percent below July 2009 numbers, according to NAR.

For more information on July 2010 housing numbers, go to www.realtor.org.

National home sales activity continued to fall in July 2010, according to the Canadian Real Estate Association (CREA). The decline was impacted by fewer sales in British Columbia and Ontario, according to CREA.

Seasonally adjusted national home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian was down 6.8 percent in July.  A 14.1 percent decline in British Columbia and 8 percent decline in Ontario numbers accounted for 85 percent of the change in national activity in July, according to CREA.

Actual (not seasonally adjusted) national sales activity in July was 30 percent below July 2009 numbers. However, year-to-date transactions are still up 5.6 percent compared to the first seven months of last year, according to CREA.

The seasonally adjusted number of new residential listings on Canadian MLS® Systems declined by 7.2 percent in July, compared to June numbers. This is the third consecutive month-over-month decrease. According to CREA, the declining trend in new listings will help maintain the balance between supply and demand, and temper home price volatility. The national sales-to-new listings ratio, a measure of market balance, has held steady between 48 and 49 percent for the past three months, which is characteristic of a balanced market, according to CREA.

For more information on July home sales in Canada, go to www.crea.ca.

The trend in stabilizing home prices solidified in the second quarter with more metropolitan areas showing increases from a year ago, assisted by a surge in home sales driven by the home buyer tax credit, according to the latest survey by the National Association of Realtors® (NAR).

In the second quarter, 100 out of 155 metropolitan areas had higher median existing single-family home prices compared to the second quarter of 2009, according to NAR. In the first quarter of this year, 91 areas had higher prices, while only 26 experienced annual price gains in second quarter of 2009.

The national median existing single-family home price was $176,900 in the second quarter, up 1.5 percent from the second quarter in 2009, according to NAR.

Regionally, existing single-family home sales in the Northeast declined 3.2 percent in the second quarter from 2009 second quarter numbers, according to NAR. In the South, existing single-family home prices fell 2 percent in the second quarter from 2009 second quarter numbers. Existing single-family home prices in the Midwest increased 1.4 percent in the second quarter from a year earlier. In the West, existing single-family home prices rose 2.6 percent in the second quarter compared to 2009 second quarter numbers, acccording to NAR.

For more information on U.S. second quarter home sales and prices, go to www.realtor.org.

June U.S. pending home sales eased down considerably in comparison to the spring surge when buyers rushed to take advantage of the home buyer tax credit, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI) declined 2.6 percent based on contracts signed in June 2010 , and is 18.6 percent below June 2009 numbers. These numbers reflect contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said lower home sales are expected in the short term. However, since home prices have come down it is unlikely that there will be a noticeable change to the national home values. Some local markets continue to show strenghthening prices, Yun said.

Regionally, the PHSI in the Northeast dropped 12.2 percent in June and is 25.4 percent lower than June 2009. The index in the Midwest fell 9.5 percent and is 27.8 percent lower than a year ago. In the South, pending home sales rose 3.7 percent, but are 13.3 percent below June 2009. The PHSI in the West fell 0.2 percent but is 14.2 percent below a year ago.

For more information, go to www.realtor.org.

The Extended Home Buyer Tax Credit expired on April 30, 2010, but home buyers who have signed contracts by April 30 and close before July 1, 2010, may still be able to claim the tax credit.

Congress has passed an extension of the Homebuyer Assistance and Improvement Act deadline. The extension applies only to transactions that have authorized contracts in place as of April 30, 2010, that have not yet closed. The new closing deadline for eligible contracts is Sept. 30, 2010. 

The Home Buyer Tax Credit was part of a plan to stimulate the U.S. housing market. The Extended Home Buyer Tax Credit extended the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. It also expanded the credit to grant up to a $6,500 credit to current home owners purchasing a new or existing home between Nov. 7, 2009 and April 30, 2010.