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Pending Home Sales Down In October

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The Associated Press

Published: December 10, 2008

WASHINGTON - Pending U.S. home sales fell slightly in October, despite a spate of bad economic news and turmoil in the stock markets, the National Association of Realtors reported Tuesday.

The group's seasonally adjusted index of pending sales for existing homes fell 0.7 percent from September to a reading of 88.9, beating economists' average estimate of 86.5, according to a survey by Thomson Reuters. The index was 1 percent below October a year ago.

Home sales have rebounded in recent months in large part because deeply discounted foreclosures and distressed sales account for up to 40 percent of all transactions, according to the Realtors group.

Home sales are considered pending when the seller has accepted an offer but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.

An index reading of 100 is equal to the average level of sales activity in 2001, when the index started. It sunk to a record low of 83 in March.

Although conditions are uneven across the country, the association noted that pending home sales are showing gains in some areas, including in Florida and California markets; Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas.

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