According to the figures released by the National Association of Realtors (NAR), July saw a decline in residential property sales in the United States; however the figures are still much higher than the same time of last year.

Regions all over the country saw a month on month decline, with the exception of the West, which still shows the highest levels of activity in sales contracts. The forward-looking indicator, The Pending Home Sales Index, which is based on contract signings, slipped down 1.3% in July, but is still 14.4% about the same time last year. It is important to note that the indicator recognises the number of contracts signed, but not closed.

Chief economist for NAR, Lawrence Yun, believes that sales activity is currently underperforming. He says “The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy…We also need to be mindful that not all sales contracts are leading to closed existing home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process.”

According to the latest Standard & Poor’s home price index, the prices for properties in America’s biggest cities increased in June for the third month in a row, making them ideal places to invest.

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