Pending home sales declined in March

Washington -- Pending U.S. home sales drifted downward in March and will remain depressed through the spring, the National Association of Realtors said Tuesday.

The Pending Home Sales Index for March was 83.0, down from 83.8 February, the association said in a news release.

"Things are beginning to improve but the availability of affordable mortgages is uneven around the country," NAR chief economist Lawrence Yun said in a statement.

"A flat pattern in home sales activity should continue for the next couple months," the association said.

In the Northeast, the monthly index gained 12.5 percent to 80.8 but remains below the index for March 2007 by 15.4 percent.

In the South, the index fell 0.1 percent to 84.9, which is 26.7 percent below March 2007.

The index dropped 1.4 percent in the West in March to 91.2 and 10.4 percent in the Midwest, declines from a year ago of 9.5 percent and 22.3 percent, respectively.

"Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by relatively few markets that are very oversupplied," Yun said.

Copyright 2008 by United Press International.