Realtors' Pending Home Sales Index Shows A Healthy Market

[Purveyor]

Source: Associated Press

(AP) WASHINGTON (AP) —Americans signed more contracts to buy homes in July than at any time in the last two years, further evidence of a housing recovery.

The National Association of Realtors said Wednesday that its index of sales agreements for previously occupied homes jumped 2.4% in July to 101.7. That's higher than June's 99.3. It's also the highest reading since April 2010, last month that buyers could qualify for a federal home-buying tax credit.

A reading of 100 is considered healthy. The index is 12.4% higher than July 2011. It bottomed at 75.88 in June 2010 after the tax credit expired.

Contract signings typically indicate where the housing market is headed. There's generally a one- to two-month lag between a signed contract and a completed deal.

Read more: http://www.usatoday.com/money/economy/housing/story/2012-08-29/pending-home-sales-index-july/57400228/1

[Glitterati]

1. And a huge number of those contracts never go through.

I just looked at a house I bid on at the beginning of the month and lost the bid. Their contract fell through and the house is back on the market.

A lot of these houses have sat empty too long and aren't passing inspections; major components haven't been maintained and are no longer working.

[Carla in Sequim]

2. I agree, but...

if the bank is smart, they will cooperate with the buyers if anything major is found by the inspector.

Our loan just got approved yesterday on a house that has been vacant for a year. The bank has waived all closing costs, including an appraisal. We will only pay for the inspection and the title report.