September 2010 Market Pulse

The latest housing indicators for the real estate market.

September 1, 2010

Existing-Home Sales for June: 5.37 million

This is a seasonally adjusted annual rate, which is the actual rate of sales for the month, multiplied by 12 and adjusted for seasonal sales differences.

Pending Home Sales Index for June: 75.7

This index measures housing contract activity. An index of 100 is equal to the level of activity during 2001, the benchmark year.

Source: NAR Research

Sales Activity Slows in June

With the tax credit ended and jobs growing only modestly, the market is showing uncharacteristic yet understandable swings. Existing-home sales fell 5.1 percent in June to 5.37 million from the previous month, but rose 9.8 percent from the year earlier. More sluggishness is expected this fall; NAR’s forward-looking pending home sales index dipped 2.6 percent to 75.7. But in the short term, there isn’t likely to be any meaningful change to home values.

Tough Prospects Hurt Optimism

Market confidence dipped over the last two months as sales slowed after the tax credit boost. Prospects for both buyers and sellers are flagging, both for the short term and over the next six months. The somber mood is consistent with slowing existing-home sales and a dip in signed contracts.

Results are based on 1,942 responses to 6,000 surveys sent to large and small real estate offices. The survey asks practitioners to indicate whether conditions are strong (100 points), moderate (50), or weak (0). Responses are averaged to derive results.

In 2012 NAR rebenchmarked its existing-home sales data going back to 2007, so reports published between 2007 and 2011 no longer contain up-to-date figures. Find the latest existing-home sales data at You’ll find more recent editions of Market Pulse here.

Lawrence Yun
Chief Economist and Senior Vice President of Research at the National Association of REALTORS®

Yun oversees and is responsible for a wide range of research activity for the association including NAR’s Existing Home Sales statistics, Affordability Index, and Home Buyers and Sellers Profile Report. He regularly provides commentary on real estate market trends for its 1.3 million REALTOR® members.

Dr. Yun creates NAR’s forecasts and participates in many economic forecasting panels, among them the Blue Chip Council and the Wall Street Journal Forecasting Survey. He also participates in the Industrial Economists Discussion Group at the Joint Center for Housing Studies of Harvard University. He appears regularly on financial news outlets, is a frequent speaker at real estate conferences throughout the United States, and has testified before Congress. Dr. Yun has appeared as a guest on CSPAN’s Washington Journal and is a regular guest columnist on the Forbes website and The Hill, an “inside the beltway” publication on public affairs.

Dr. Yun received his undergraduate degree from Purdue University and earned his Ph.D. from the University of Maryland at College Park.