Sales of Existing U.S. Homes Decreased as Forecast in September

Growing pessimism about the economy, unemployment above 9 percent and limited access to credit are keeping some Americans from taking advantage of near record-low mortgage rates. Foreclosures that are adding to the supply of Homes for Sale and driving down prices remain a hurdle for an industry that’s made little progress more than two years after the recession ended. Fewer Claims The number of Americans filing claims for unemployment benefits declined last week to a level that shows little improvement in the labor market since the start of the year, a report from the Labor Department showed today. Applications dropped by 6,000 to 403,000 in the week ended Oct. Claims had been as low as 375,000 in February, the month employers added 235,000 workers to payrolls. Other reports showed manufacturing in the Philadelphia region unexpectedly expanded in October and the index of leading economic indicators rose 0. The median price of a previously owned home fell to $165,400 from $171,400 in September 2010, today’s report showed. Existing-home sales, tabulated when a contract closes, rose 15 percent from the same month last year before adjusting for seasonal variations. Less Inventory The number of previously owned homes on the market fell 2 percent to 3. Month’s supply in the seven months to eight months range is consistent with stable home prices, the group said. The market “is in a holding pattern,” Lawrence Yun, the group’s chief economist, said in press conference. Contract cancelations were reported by 18 percent of the group’s members in September, the same as in the prior month. The level is at least twice as high as under normal circumstances, said Yun. The cancelations reflected mortgage applications that were refused or because appraised home values were coming in below the sales price, the group said. The agents group’s annual effort to benchmark its sales data is “taking longer” than originally estimated, said Yun. He said courthouse data on sales that the NAR was reviewing was “messy” due to double-counting in some cases and “fuzzy” documentation. Purchases of multifamily properties, including condominiums and townhouses, climbed 1. Purchases dropped in three of four regions, led by an 8. The West is probably the area most affected by the recent reduction in conforming loan limits, Yun said. Homes for Sale