Pending real estate sales hit record low

NAR: Midwest, Northeast see steepest drops in signed contracts

An index that tracks pending home sales nationwide fell to a new record low in June, according to a report by the National Association of Realtors.

The association’s Pending Home Sales Index fell to 75.7 from an upwardly revised 77.7 in May. That’s an 18.6 percent drop compared to June 2009 and a new low for the index, which has data dating back to 2001.

May had seen the index’s previous record low and its first decline after three straight months of increases, which NAR attributed to the impending April 30 contract deadline to qualify for federal homebuyer tax credits. NAR’s chief economist, Lawrence Yun, said he expected home sales to fall in the short run after the tax credit’s expiration.