July Pending Home Sales continue long term downtrend

By John Galt
August 29, 2011 – 10:20 ET

The latest report from the National Association of Realtors indicates the end of the cash for clunkers housing stimulus was probably the last peak in activity we will see for quite some time. The amount is higher than last July’s low reading, which is the highlight the NAR will continue to point towards but the reality is that this is a long term trend line to the downside after the failed Obama housing stimulus program which only provided a temporary increase in activity and prices. The long term move continues to indicate that the United States is in a real estate depression which will continue for most regions of the country through then end of this decade.

(Click to enlarge/reduce chart)

pendinghome_july2011

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