Pending home sales unexpectedly plunge

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A view of a home for sale in Los Angeles February 24, 2010. REUTERS/Mario Anzuoni

A view of a home for sale in Los Angeles February 24, 2010.

Credit: Reuters/Mario Anzuoni

WASHINGTON | Thu Mar 4, 2010 10:39am EST

WASHINGTON (Reuters) - Contracts for pending sales of previously owned homes unexpectedly fell in January, a survey showed, brought down in part by harsh weather in the U.S. Northeast.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in January, fell 7.6 percent to 90.4 from an upwardly revised 97.8 in December.

Analysts polled by Reuters had forecast pending home sales, which lead existing home sales by one to two months, would rise 1 percent in January.

Compared to January 2009, the index was up 12.3 percent.

(Reporting by Corbett B. Daly; Editing by Padraic Cassidy)
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Comments (3)
Kina wrote:
This should probably not be a surprise. Unemployment is worse than official figures and weekly reports are not reflecting reality out their.

People have been getting carried with some tiny signs of recovery…but really have meant the economy is getting worse less slowly, not getting better.

People expect housing prices to fall further. People will be buyers only if they know they are getting absolute bargains. THis is deflation.

Mar 04, 2010 10:11am EST  --  Report as abuse
Kina wrote:
There is lot of worry to come for the banks. Soft housing prices is going to be devastating for losses and write downs.

This is going to magnified by commercial real estate loan roll overs commencing mid year and in all 1.5 trillion. Their will be considerable asset write downs, losses…and banks in great trouble again, meaning their ability to lend to consumers and small business will cut short again.

Mar 04, 2010 10:19am EST  --  Report as abuse
TheMarketTruth wrote:
Unexpectedly fell? Whomever felt this was unexpected needs to be fired for not having a clue as to market analysis. Just wait, when July through October’s numbers roll around for ‘jingle mail’ they will still find that more home forecloses were unexpected as they are clues about reading simply charts about finance resets.

The worst is still in front of us.

Mar 04, 2010 11:38am EST  --  Report as abuse
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