US Pending Home Sales Fall 4%

Source : The Business Times, January 6, 2009

WASHINGTON - US pending home sales fell in November to their lowest level on record amid rising unemployment and a deteriorating economy, the National Association of Realtors said on Tuesday.

The industry trade group said its forward-looking pending home sales index, based on contracts signed in November, fell 4.0 per cent to 82.3 from a downwardly revised reading of 85.7 in October.

The November reading is 5.3 per cent below November 2007's level of 86.9 and is the lowest since the series began in 2001, with an index of 100 representing the average level of contract activity that year.

'Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,' said Lawrence Yun, NAR chief economist.

Mr Yun said a government real-estate focused stimulus plan was urgently needed to address the housing slump at the center of the economy's recession. -- AFP