Pending sales of existing homes drop unexpectedly in June

The job market and personal incomes will need to improve before buyers are willing to start spending again. In June, incomes and consumer spending were flat as Americans saved at the highest rate in more than a year. 

"There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve," NAR Chief Economist Lawrence Yun said today. 

"Over the short term, inventory will look high relative to home sales. However, since home prices have come down to fundamentally justifiable levels, there isn’t likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices."