A recent report shows that June's level of pending home sales declined, which could come as no surprise to those who use construction equipment.
According to the National Association of Realtors, an index that tracks these sales declined 2.6 percent when compared to levels seen in May. Furthermore, the number of contracts seen in June was 18.6 percent below what was reported during the same month in 2009.
Lawrence Yun, chief economist for the NAR, said that the next few months could still see lower home sales until later on in 2010.
"Over the short term, inventory will look high relative to home sales," Yun said.
One reason why home sales may have declined of late is the end of a tax credit from the government for first-time and repeat property purchasers. The former could have gotten as much as $8,000, while the latter had the chance at up to $6,500.
The credit effectively concluded on April 30, which was the date by which people had to have an agreement in place. While consumers originally had to close on the purchase by June 30 to take advantage of the credit, Congress extended the deadline to September 30.
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