Looking for signs of cooling? Read this:
The National Association of Realtors said its pending home-sales index in July declined 1% on a seasonally adjusted basis from June, though it was still up 3.5% from a year earlier. A sale is considered pending when a contract has been signed but the transaction hasn’t been completed.
The housing market has shown other tentative signs of cooling recently. Inventories of unsold homes have been rising in some cities, and houses have been sitting on the market longer. The Mortgage Bankers Association reported earlier this week that its index of demand for mortgages used to purchase homes stood at 470.6 as of Aug. 26, down 11% from a peak of 529.3 on June 10.
Source: The Wall Street Journal Online