Pending Home Sales Take Giant Plunge

Experts recommend buying a house immediately
By Kevin Spak,  Newser Staff
Posted Jan 8, 2008 12:25 PM CST
An overgrown sign sits on the lawn of an old house for sale in Newtown, Penn., in this May 30, 2007 file photo. Reflecting further housing troubles, sales of existing homes fell in May to the lowest...   (Associated Press)
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(Newser) – Pending home sales fell 2.6% in November from a revised 3.7% October gain, Bloomberg reports, far outstripping the 0.7% fall analysts predicted after an originally reported 0.6% October gain. The figures support Henry Paulson’s gloomy outlook on the housing market. “There is no evidence it is bottoming,” the treasury secretary said today, reiterating his call for government help for all mortgage holders, not just subprime borrowers.

The index is down 19% on the year and will fall further, analysts predict. “There’s more bad news to come in housing before it gets better,” said one economist. KB Home, the fifth-largest homebuilder in the US, reported big fourth-quarter losses today as record foreclosures continued to flood the market with homes; there was a 10.3-month supply in November.