Thursday, October 31, 2013

Pending Home Sales Down

Pending home sales declined in September for the fourth month in a row, a signal to expect lower home sales this quarter and a flat trend going into next year, a trade group said Monday.

The pending home sales index, a forward looking indicator, fell 5.6% to 101.6 in September from a downwardly revised 107.6 in August and is 1.2% below last year's level, the National Association of Realtors says.

That the index is lower than last year marks the firs time that's occurred in 29 months, NAR says.

"This tells us to expect lower home sales for the fourth quarter," says Lawrence Yun, NAR chief economist. Even so, he expects prices to continue to rise, but at a slower pace -- echoing expectations of many housing watchers and other economists.

Higher mortgage interest rates and home prices curbed consume buying power, NAR says. The government shutdown also played a role, as government and contract workers were on the sidelines.

 

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