Pending Home Sales Fall to New Low

The National Association of Realtors' Pending Home Sales Index fell 4% between October and November and is now at the lowest point since the trade group started tracking this data in 2001. Job losses and low consumer confidence were the driving factors, the group said. The new index is 82.3, compared with 85.7 in October and 86.9 for November 2007. And according to NAR chief economist Lawrence Yun, "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. With a properly real-estate focused stimulus measure, home sales could rise more than expected, by more than 10% to 5.5 million in 2009, and easily begin to stabilize home prices in many parts of the country." NAR calls for expanding a $7,500 tax credit to all homebuyers and permanently raising the conforming loan limits. "The unique housing affordability conditions in today's market underscore the opportunities in giving consumers the necessary incentives to stimulate our economy through a housing recovery," Mr. Yun said.