Pending Sales of U.S. Houses Probably Decreased in January

Bloomberg (03/06/08); Willis, Bob
A Bloomberg survey of more than two dozen economists indicates they expect the National Association of Realtors (NAR) to report a decline of 1 percent in its pending home sales index for January, marking the third straight monthly drop. According to Lehman Brothers Holdings Inc. chief U.S. economist Ethan Harris, "The imbalance between housing demand and housing supply has continued to grow. Potential buyers remain hesitant, given expectations of continued price declines and recession fears." Overall, the economists forecast anywhere from a 3 percent plunge to a 1.5 percent jump in the pending sales index, slated for a March 6 release. NAR expects 5.38 million resales in 2008, down 4.8 percent from 5.65 million last year, and a decrease in new-home starts to 1.08 million from 1.35 million over the same time span.