Decline in US pending home sales

US pending home sales index fell 3.2% month-on-month in July from an upwardly revised reading of +5.8% in April, it has been revealed.

This decline was behind the consensus forecast decline of 1.5%.

It is estimated that approximately 80% of pending sales will become existing sales within two months.

Commenting on the decline, the National Association of Realtors in the US said that "pending home sales are oscillating month-to-month, with the long term trend essentially flat" on a national basis over the last year and is now forecasting FY08 existing home sales of 5.01m (-11% year-on-year) with an increase of circa 7% expected in 2009.