08.01.2008 20:00 Real Estate
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The National Association of Realtors' pending home sales index fell to 87.6, ending a two-month streak of increases.
The index is now 19.2 percent lower than a year ago, indicative of the meltdown in real estate after several sizzling years.
The pending home sales index counts contracts signed for buying homes, indicating the existing home sales rate one to two months ahead of when the sales close and are counted in a separate report.
While the number dropped in November, NAR chief economist Lawrence Yun said in a statement that he expects existing home sales to remain steady over the next few months, then rise later in the year.
"A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008," Yun said.
However, Yun did not rule out further declines in the index before the recovery.
"Although there could be some minor slippage in the first quarter, existing-home sales should hold in a narrow range before trending up," he said.
