December 9, 2008

Pending home sales dip in October

Pending U.S. home sales dipped slightly in October, falling 0.7 percent, the National Association of Realtors in Washington said Tuesday.

The Pending Home Sales Index, based on contracts signed in the month, fell from 89.5 to 88.9, a drop of 1 percent from October 2007, NAR said.

Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, NAR chief economist Lawrence Yun said in a statement.

There is pent up demand and access to safe, affordable mortgages will bring more buyers into the market, he said.

From region to region, sales conditions remain uneven, however, NAR said.

The index jumped 7.8 percent in the South and only 0.6 percent in the Northeast, where the PHSI is 14.1 percent below a year ago.

In the Midwest, the index fell 4.3 percent, while in the West the index fell 8.7 percent, the report said.