Existing U.S. Home Sales Drop More Than Forecast on Foreclosure Moratorium

By Timothy R. Homan


Nov. 23 (Bloomberg) -- Sales of existing homes fell more than forecast in October as foreclosure moratoriums and a lack of credit disrupted the U.S. housing market.

Purchases decreased 2.2 percent to a 4.43 million annual rate from 4.53 million in September, the National Association of Realtors said today in Washington. Economists projected sales would decline to a 4.48 million pace, according to the median forecast in a Bloomberg News survey. The median price fell 0.9 percent from a year earlier.

An overhang of distressed properties and an unemployment rate hovering near 10 percent may restrain home sales, while concerns over faulty foreclosure proceedings threaten to further delay the mending process. At the same time, mortgage rates near record lows may help limit the damage.

“With high unemployment and falling home prices, there will likely continue to be a large number of homeowners falling into default,” Michelle Meyer, a senior U.S. economist at Bank of America Merrill Lynch Global Research in New York, said before the report. “It will take years to equilibrate the housing market.” ..........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aboi11ydT6mU&pos=2