The Index of Pending Home Sales Slides in May to the Third Lowest Reading Ever
The bad news in the housing market is now becoming normal. From CNNMoney.com:
Existing home sales are likely to see more declines in coming months as a key reading of pending deals fell to nearly a six-year low in May . . . The National Association of Realtors said its index of pending home sales, which reflects homes under contract, sank to 97.7 in May from 101.2 in April. The latest reading is 13.3 percent lower than May 2006. . . . The pending home sales index tracks when a sales agreement is signed, generally a month or two ahead of closing.
The index was set at 100 at the start in 2001. . . . .The latest reading matches the third lowest.
The existing home sales report had already shown problems before the latest pending home sales numbers. Last month the group's May figures showed the slowest pace of home sales since June 2003, while the glut of homes on the market hit a 15-year high.