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The index for pending home sales is closely watched because it is an indication of final sales. It usually takes about two months for real estate deals to be completed.
The newest numbers are not good. Pending home sales fell by 7.6% in January. The National Association of Realtors index stood at 90.4. A reading of 100 is considered normal. Analysts had expected a rise of 1% in January.
Whether the weather was a factor is not clear. Whatever the reason, interest in purchasing previously owned homes fell off sharply.
This drop is happening in the face of strong first time buyer incentives of $8,000 and $6,500.for persons living in their homes for more than five years.
It stands to reason that with nearly 17 million unemployed and underemployed, there are few customers who have the capital to run out an purchase a home. Then if you add the strict banking requirements it becomes increasingly difficult to obtain a mortgage.
So what we have is an extremely sluggish market. This will probably be the way it goes for a while. Maybe spring will bring on a bit more optimism.
Do you see the market improving this year?
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