Pending home sales slide sharply

The nine-month streak was the longest upswing since the data was first compiled in 2001.

Economists had expected a 2 percent drop, however. Instead, the monthly report showed a 16 percent drop in November from October.

NAR Chief Economist Lawrence Yun said, "it will be at least early spring before we see notable gains in sales activity, as home buyers respond to the recently extended and expanded (federal) tax credit."

"We expect another surge in the spring ... before the tax credit expires," he said.

The Pending Home Sales Index, based on contracts signed in the month, dropped from 114.3 in October to 96. However, the index is 15.5 percent higher than November 2008, when it was 83.1.

The index dropped 25.7 percent to 74.4 in the Northeast, where gains were highest a month ago. In the Midwest, the index also dropped 25.7 percent to 82.

The index fell 15 percent to 97.8 in the South and 2.7 percent to 124.6 in the West.

Copyright 2010 by United Press International.