November Pending Sales
Washington, January 5, 2010 - Pending home sales pulled back in November marking the first time in nine months that the index failed to post gains.
Experts had anticipated a correction to 111.8 however the index declined below the expected number to pull down 16% from the from dOctober’s revised reading of 114.3.
The Northeast and Midwest bore the brunt of the decline posting 25.7% drops while sales fell by 15.0% in the South and 2.7% in the West.
Analysts point out that ven with this lower than anticipated performance the index is up 15% for the year( 2009).
National Association of Realtors chief economist, Lawrence Yun was cautious but optimistic stating that “It will be at least early spring before we see notable gains in sales activity as home buyers response to the recently extended and expanded tax credit. “ Yun further added that market can expect a surge in the spring as affordable housing conditions will entice buyers.
more than economists had anticipated in November, falling by a record 16%, ending the index’s nine month streak of consecutive gains, the National Association of Realtors (NAR) reported today. Economists had expected the index to inch down to 111.8 from October’s reading of 114.1, which has since been revised to 114.3. Despite posting the largest monthly decrease since the series began in 2001, the index is still up 15.5% over the year.
NAR reported that pending sales indices dropped in every region in November. Indices in the Northeast and Midwest both fell by a staggering 25.7%, records for both regions, while sales fell by 15.0% in the South and 2.7% in the West.
NAR chief economist Lawrence Yun had expected a drop in sales. “It will be at least early spring before we see notable gains in sales activity as home buyers response to the recently extended and expanded tax credit,” he said. Yun added that market can expect a surge in the spring as more home buyers take advantage of affordable housing conditions. Vimombi.Nshom@thomsonreuters.com /wash
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