Pending home sales fall in January by 7.6%

The number of buyers who agreed to purchase a home fell sharply in January, a sign that demand for housing is sinking this winter as stormy weather slammed Eastern states.

Record snowstorms in January and February had many Americans shoveling sidewalks and driveways instead of combing through listings for open houses. Partly as a result, an index that tracks sales agreements fell 7.6 percent from December to a seasonally adjusted January reading of 90.4, the National Association of Realtors said Thursday.

It was the lowest reading since last April and a disappointment to economists, who had expected it would rise to 97.6.

The weakness, however, was not confined to the wintry Northeast. The biggest month-to-month drop was in the West, where sales fell 13 percent. Sales fell almost 9 percent in the Northeast and Midwest and 2 percent in the South.

Although low mortgage interest rates and the tax credit should help increase real estate sales, there is a bigger problem.

Many homeowners who would like to take advantage can't because they owe more money on their homes than what they can get from an appraisal. To many people are stuck. That is why I see an increase in foreclosure filings.

For more information, go to: Pending home sales fall 7.6 pct. in Jan

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Blog post written by the Dowell Taggart Team of RE/MAX Best Associates

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