Pending home sales decrease in August

Pending home sales declined 1.6% in August, still a 5.8% increase from August of last year. 

By , Guest blogger

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    Pending home sales declined with the seasonally adjusted national index falling 1.6% from July but increasing 5.8% above the level seen in August 2012.
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Yesterday, the National Association of Realtors (NAR) released their Pending Home Sales Report for August showing that pending home sales declined with the seasonally adjusted national index falling 1.6% from July but increasing 5.8% above the level seen in August 2012. 

Meanwhile, the NARs chief economist Lawrence Yun is suggests rising interest rates (as a  result of the Feds "tapering" debacle) worked to motivate spring buyers but now that the seasonal surge is over, lower home sales are expected:

"Sharply rising mortgage interest rates in the spring motivated buyers to make purchase decisions, culminating in a six-and-a-half-year peak for sales that were finalized last month ... Moving forward, we expect lower levels of existing-home sales, but tight inventory in many markets will continue to push up home prices in the months ahead."

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The following chart shows the seasonally adjusted national pending home sales index along with the percent change on a year-over-year basis as well as the percent change from the peak set in 2005 (click for larger version). 

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