Pending us property sales slip from two-year peak

Pending sales of US property fell from their two-year peak last month, according to the National Association of Realtors. The Pending Home Sales Index, based on contract signings, dropped by 2.6 per cent in August after a busy July, where sales were at the highest level since April 2010 (when buyers were rushing to beat the deadline for the home buyer tax credit).

But despite the slight decline, pending sales remain 10.7 percent above August last year as the market continues to recovery. Indeed, existing home sales this year are expected to rise 9 percent to 4.64 million, and gain another 8 percent in 2013 to nearly 5.02 million. And with generally balanced inventory conditions in many areas, the median existing-home price is projected to rise about 5 percent in both 2012 and 2013.

Lawrence Yun , NAR chief economist, said some volatility can be expected in the monthly readings. "The performance in month-to-month contract signings has been uneven with ongoing shortages of lower priced inventory in much of the country, and across most price ranges in the West, but activity has remained at notably higher levels this year," Yun said.

"The index shows 16 consecutive months of year-over-year increases, and that has translated into a higher number of closed sales. Year-to-date existing-home sales are 9 percent above the same period last year, but sales were relatively flat from 2008 through 2011," Yun added.