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Pending Home Resales Rise 7.4% as Foreclosures Drop Prices

Atlanta, Ga. 10/9/2008 10:04:02 PM

According to the National Association of Realtors pending home resales rose 7.4% in August, a sharp contrast to the 2.7% drop in sales for July.

 

Many attribute the rise to an increase in foreclosures in the housing market and in turn a large drop in prices. While investors purchasing foreclosed homes are believed to be the main buyers the increase is a welcome relief to the troubled housing market.

 

While the numbers may provide relief it remains to be seen how many of the pending sales actually close as banks remain leery of lending money for property. That could change as the Fed cut its key rate to 1.5% on Wednesday to ease the credit crunch that has brought lending to a halt.

 

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