NAR index drops to 8-year low

WASHINGTON – In the face of job losses and a slowing economy, pending home sales have declined across the United States, according to the National Association of Realtors Pending Home Sales Index, released early this week.
Based on November’s signed contracts, the forward-looking index fell to 82.3 points, down 3.96 percent from October’s 85.7. Year-over-year, the index was down 5.3 percent from 86.9 in November 2007.
The index is the lowest it’s been since 2001, the association said.
“Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” NAR Chief Economist Lawrence Yun said in a statement on Tuesday. “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.”
NAR also said President-elect Obama’s proposed federal stimulus package could potentially benefit home builders. “Experts say investment banks and home builders would benefit substantially from such a plan, with some firms receiving billions of dollars,” the NAR said.
Yun said the right use of stimulus package funds – including expanding the $7,500 tax credit for first-time homebuyers to including all homebuyers – could push home sales up during 2009. Sales “could rise more than expected, by more than 10 percent to 5.5 million in 2009, and easily begin to stabilize home prices in many parts of the country,” he said.