According to the National Association of Realtors (NAR), the Pending Home Sales Indexrose 0.1% during the month of May. The index was up 6.7% compared with May 2008. It was the first four-month run up in the pending sales measure since October 2004. But the rise in sales contracts may not yield a like increase in completed sales, according to Lawrence Yun, chief economist for NAR. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. Many industry insiders have complained that home appraisals are being too often based on values of foreclosed properties, which sell for significantly less than the homes of ordinary sellers.
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