From CNN:
The number of homes under contract for sale fell in March, hitting a record low for the second consecutive month, according to a report released Wednesday.
The National Association of Realtors' (NAR) Pending Home Sales Index fell to 83 in March, down 1% from a downwardly revised reading of 83.8 in February. The rate of decline was in line with a consensus estimate of economists compiled by Briefing.com.
March's reading was down 20.1% from the same period last year and 35% from the index's peak in April 2005.
and from Bloomberg:
Fewer Americans signed contracts to buy previously owned homes in March for the second consecutive month as falling prices and tougher loan rules discouraged buyers.
The index of pending home resales fell 1 percent to 83, following a 2.8 percent drop in February that was larger than previously reported, the National Association of Realtors said today in Washington. The decline matched the median forecast of economists surveyed by Bloomberg News.
The glut of unsold properties is driving down home values, while rising defaults on subprime mortgages have prompted lenders to restrict access to credit, representing more hurdles for buyers. The slump in residential real estate may persist for much of the year, hurting economic growth.
Yet another record low in the pending-sales index .
With home prices falling, inventory surging, and credit and mortgage options limited, the downward trend in home sales seems to have reasserted itself after a brief uptick last fall.
These latest NAR numbers, which show a continuing decline in pending home sales as well as a downward revision from the last report, only serve to confirm what's been said many times before: that we are still months away from a recovery in the real estate housing market.
The future does look bright, at least according to the NAR. The group maintains that sales will continue to drop for the first half of the year, but for the numbers to improve in the second half.
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