Contract cancellations' surge holds back us sales numbers

The United States is seeing an improvement in its sales figures despite contract failures dramatically rising according to the National Association of Realtors (NAR).

Data from NAR shows that sales of single-family homes, condominiums, townhomes and co-ops rose 1.4% in October, from 4.9 million the previous month to 4.97 million.

Year-on-year sales are 13.5% above the 4.38 million figure posted in October 2010.

However, sales have been tempered by a rise in contract cancellations: sales abandoned due to declined mortgage applications, failures in loan underwriting or other issues such as employment losses or home inspections.

Source: OPP