Pending Sales of Existing U.S. Homes Fell in November

[marmar]

from Bloomberg:



Pending Sales of Existing U.S. Homes Fell in November (Update1)

By Joe Richter

Jan. 8 (Bloomberg) -- The number of Americans signing contracts to buy previously owned homes fell more than forecast in November, signaling further deterioration in housing.

The National Association of Realtors' index of pending home sales decreased 2.6 percent to 87.6, following a revised 3.7 percent gain in October that was larger than previously estimated, the group said today in Washington.

More stringent lending practices after the collapse in subprime lending and prospects that home prices will keep falling are deterring buyers, economists said. The housing slump is likely to last well into 2008, hurting economic growth and prompting Federal Reserve policy makers to lower interest rates.

``We'll probably see more weakness in existing home sales given that inventories are so high,'' said James O'Sullivan, a senior economist at UBS Securities LLC in Stamford, Connecticut. ``Prices may keep dropping for a while.''

Economists forecast the index of signed contracts for existing homes would fall 0.7 percent following a previously reported 0.6 percent October increase, according to the median of 33 projections in a Bloomberg News survey. Estimates ranged from a drop of 3 percent to a 0.3 percent increase.

Compared with a year earlier, the index was down 19 percent.

Regional Breakdown

Today's report showed pending resales fell in three of four regions. Purchases decreased 13 percent in the Northeast, 4.1 percent in the Midwest and 2.1 percent in the West. Sales rose 2.3 percent in the South. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aZP7.lLg6H_U&refer=home

[On the Road]

1. If You're Looking for a House,

check foreclosures, brokers, and real estate investment boards for bargains. It's a great time to buy.

Closing on a house today for $35,000 in Baltimore. Full of junk, and most of the drywall needs to be replaced, but it has three bedrooms, a finished basement, and is on a safe street near a park. Found it through a real estate agent email list who specializes in things like this. It is an estate sale and the new owners had to dump it.

Investors are selling right and left, even in markets that were not overpriced to begin with.