Nation: Homes Sales To Vary In Narrow Range, Then Rise In Second Half

The latest forecast by the National Association of Realtors is for modest near-term movement with a recovery in sales seen during the second half of the year. The Pending Home Sales Index, a forward-looking indicator based on contract signed in May, fell 4.7 percent and remains 14 percent below May 2007. NAR's chief economist Lawrence Yun, said some pullback after a sharp increase in the previous month was expected. "the overall decline in signings suggests we are not out of the woods by any means. The housing stimulus bill that is still in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy." Yn said that location has never mattered more than in the current market. "Some markets have seen a doubling in sales from a year ago while others are seeing signings cut in half. Price conditions vary, even within a locality, depending upon a neighborhood's exposure to subprime loans." NAR President Richard F. Gaylord, said the current market offers immediate benefits and long-term value for buyers. "Home buyers are getting a great deal right now." Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter. For all of 2008, existing-home sales should total 5.31 million and then increase 5.0 percent next year to 5.58 million.