Pending homes sales stall in US real estate market

photo credit: yoppy

Real estate experts have warned pending homes sales are down in the US, but said things could improve with the help of a stimulus package.

The National Association of Realtors (NAR) released a pending homes sales index, based on contracts signed in November.

It has fallen four per cent to 82.3 per cent from a downwardly revised reading of 85.7 in October.

Experts said job losses and weak consumer confidence could be impacting deals on homes.

NAR chief economist Lawrence Yun said:

“December’s housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed.”

The group’s president, Charles McMillan, also said there could be no economic recovery without a focus on real estate and homes in particular.

According to the NAR index, a sale is listed as pending when the contract has been signed but the full real estate transaction has not closed, though the sale is usually finalised within one or two months of signing.

The group has been calling for a $7,500 tax credit to all home buyers and eliminating the repayment feature.

NAR executives also want the government to permanently raise loan limits to bring down interest rates for buyers in high-cost areas.

Related posts:

1. Signs of recovery in US homes market
2. Homes sales increase across US
3. NAR: US real estate market needs more buyer confidence
4. US real estate market records high sales, low prices
5. Government package inadequate for Indian real estate market