Pending Home Sales Down By Nearly 25%

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Compared to December a year ago, pending home sales were down 24.2 percent. The National Association of Realtors Pending Home Sales Index, based on contracts signed in December, dropped to 85.9 from 87.2. These are the deals that are expected to close in January and February. House signings were down further than demographic and employment trends had implied.
All this seems to indicate that we've got a long way to go before our real estate led financial troubles are over. Lower housing sales also point to a higher default rate, as homeowners who can no longer afford their mortgages can't find buyers for their property.
But what do we know? Home builders were up nearly 50% in January, presumably on the expectation that lower interest rates would spur home buying. And it's not likely that so many investors could be wrong on something as fundamental as real estate, right?
Dec pending home sales fell 1.5 percent: Realtors [Reuters]

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