Nationally, sales of existing homes were projected to rise in June 2011, largely because the number of homes that went under contract in May 2011 rose. Since it typically take 1-2 months for a home sale to close, the number of signed contracts in a month is used to project the number of closed sales in the next.
Unfortunately, in June 2011, sales fell .08%, relative to May 2011. The normal market problems (tight lending, inaccurate appraisals) have been in effect for some time so they would not fully explain this recent setback.
It appears buyers were weary of the recent decline in the economic outlook and rising unemployment. Home buyers are definitely skittish nowadays and when their confidence is shaken they pull away.
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