WASHINGTON, Dec. 4 (UPI) -- Pending U.S. home sales in October hovered in a narrow range, another sign the housing sector is stabilizing, an industry group said Monday.
The National Association of Realtors' index of such pending sales, based on contracts signed in October, slipped 1.7 percent to a reading of 107.2 and is 13.2 percent lower than October 2005.
The index had trended up from a cyclical low of 105.6 in July and a decline from year-ago levels is narrowing, NAR said in a news release. In September, the index was 13.6 percent below a year earlier, while in August the decline was 14.0 percent.
"It's important to focus on where the housing market is now -- it appears to be stabilizing and comparisons with an unsustainable boom mask the fact that home sales remain historically high -- they'll stay that way through 2007," an NAR economist said.
"In addition, a temporary correction in prices distracts from the fact that it is primarily the number of home sales that affects the economy and the number for this year will be the third highest on record."
