Buying a home isn’t something you do in an afternoon. It takes several weeks, maybe months. That could explain why, despite news of improved buying conditions, the latest home sales numbers from the National Association of Realtors show sales dropping 2.5 percent in August. Why would sales be slowing at the same time conditions are getting better for buyers? Well, because August numbers reflect the closed sales of buyers who began shopping for a house many weeks earlier, while buyers motivated by falling rates in August will close sales in the weeks ahead. Lawrence Yun, NAR’s chief economist, says sales should move higher in coming months. “Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” Yun said. Mortgage rates have now been falling for most of the past two months and the number of available homes for sale – according to the NAR – is up 22.7 percent from last year at the same time. That’s good news for both fall home buyers and future sales numbers. (source)