Real Estate News
U.S. Pending Home Sales Drop

U.S. Pending Home Sales Drop

The U.S. pending home sales index dropped for the fifth consecutive month in October, reaching its lowest since last December, according to the National Association of Realtors.

The index - reflecting contracts and not closed sales -- dropped 0.6 percent to 102.1 in October, from an upwardly revised 102.7 last month. It is 1.6 percent lower than last year.

NAR expected the drop in market activity for October.

Thumbnail image for lawrence-yun.jpg

Lawrence Yun

"The government shutdown in the first half of last month sidelined some potential buyers," NAR chief economist Lawrence Yun said. "We could rebound a bit from this level, but still face the headwinds of limited inventory and falling affordability conditions."

The index grew modestly in the Northeast and Midwest, while dropping in the South and West.

Last week NAR reported a 3.2 percent monthly drop in existing home sales for October. However, the figure was 6.0 percent higher than last year. 

Annual existing-existing home sales are expected to be almost 10 percent higher in 2013 compared to last year, NAR reports.

The national median existing-home price has endured double-digit yearly increases for 11 consecutive months and is projected to be 11 percent higher in 2013 than last year.

However, there are concerns for the housing market heading into 2014.

"New mortgage rules in January could delay the approval process, and another government shutdown would harm both housing and the economy," Mr. Yun said.

Sponsored by

Comment with Facebook

Copyright 2010 - 2019 WORLD PROPERTY JOURNAL, INC. All Rights Reserved.

Join 34,000+ real estate professionals worldwide who receive our free weekly newsletter

News Search

Listing of The Day

Luxury Property Spotlight

Reader Poll

Featured International Listings
Free News Alerts

Sign up now to receive the latest local & global real estate news in your inbox.