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WASHINGTON: US pending home sales rose dramatically in July, a trade group said on Thursday, promising a much-needed boost to the sluggish housing market.
The National Association of Realtors said pending home sales rose 5.2 percent based on contracts signed in July.
Analysts had expected sales to be flat after a terrible figure for June, which showed sales near nine year lows.
June's figure was revised down two-tenths of a percent.
But the industry group warned the foundations for a firm recovery were not yet set.
"Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," said Lawrence Yun, NAR chief economist.
"For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity," he said.
- AFP/de
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