Market Conditions - July 7, 2006 by Carla L. Davis
More leveling is appearing in a market that many already said was flat. The National Association of Realtors released numbers this week that indicate pending sales are down considerably from last May (down by 10.1 percent), and are up only 1.3 percent from April 2006. David Lereah, NAR's chief economist, notes the Pending Sales Index is leveling out. "This is consistent with our forecast, which is showing a soft landing for the housing sector. We are entering the second phase of the transition period from the housing boom, in which sellers are becoming more realistic about their expectations -- sales are stabilizing and annual home price appreciation is returning to historic norms." Market conditions vary by region, because of an infinite number of factors ranging from job growth to local climate. The Northeast is down by all pending accounts at this time. It dropped 0.6 percent in May, and is still 7.8 percent lower than last year.The South is also seeing fewer pending sales -- by as much as 1.7 percent. The Midwest and West both saw rises, however. While the Midwest saw a slight 0.6 percent rise, the West actually experienced 9.9 percent more sales in May 2006 than earlier this year, though this number is still nearly 13 percent below May 2005. So as the market cools, or flattens, or levels out, it appears that the market may be more predictable in the short term than many critics foresaw. | 
