Sunday, July 10, 2005

Home Sales Take a Mild Dip

The number of home sales have taken a mild dip which is typical of a a housing boom peak.

The Pending Home Sales Index, the leading indicator for the housing market, slipped from near-record levels but remains historically high, according to the National Association of Realtors

The Pending Home Sales Index,* based on data collected for May, stands at 124.9, which is 2.0 percent below April but 3.7 percent above May 2004. April’s downwardly revised reading of 127.5 was second only to a record of 128.1 in October 2004.

The index is based on pending sales of existing homes, including single-family and condos; a sale is pending when the contract has been signed but the transaction has not closed. Pending home sales typically close within one or two months of signing.
Watch for the Pending Home Sales Index too continue to fall as we move deeper into the stagnation period in many places. In many housing markets, the stagnation period will likely turn into a declining price period around this October.


  1. All blogs from Ben Jones seem to be gone ...

    Was he baned or something?

    Any idea what happened? Why on earth did they remove anon posting too?

  2. Not sure. I am sure he will be back. Ben Jone's Blog rocks. He is the leader of the Housing Bubble Bloggers. ( I have the utmost admiration for him)

  3. I thought this was interesting for all the people saying the interested rates are the catalyst for change in the housing market. History tells us that the housing market bubble bursts in the past are the reason why interest rates go up.