Pending US homes sales edge, but canceled contracts soar

Although pending home sales edged up in June, a new report found that cancelations skyrocketed, with four times as many agents reporting that would-be buyers were unable to close.

"Home sales had been trending up without a tax stimulus, but a variety of issues are weighing on the market including an unusual spike in contract cancellations in the past month," Lawrence Yun, a chief analyst for National Association of Realtors, said in a statement.

The reasons behind the spike in cancelations are unclear, but may include tight credit and low appraisals, the group said. It found that 16 percent of NAR members reported a sales contract was canceled in June, up from 4 percent in May.

Overall, gains in the South and the West helped boost pending home sales by 2.4 percent in June, according to a report by the National Association of Realtors.

Source: News/Talk WJR