NAR: Pending Sales of Existing Homes Down 7.6% In January. Weather Hurt Activity.

The National Association of Realtors reported that the number of existing homes (as opposed to new construction) that entered into sales contracts in January dropped 7.6%. NAR’s chief economist Lawrence Yun said bad weather was a big reason, and also said that ‘sufficient’ job creation would create a self-sustaining housing recovery. Many other economists think 10%-range unemployment will be the norm for years to come. Yun’s comments below:

“January pending sales, though still higher than one year ago, remain much lower than expected given that a large number of potential buyers are eligible for the expanded home buyer tax credit. Moreover, the abnormally severe and prolonged winter weather, which affected large regions of the U.S., hampered shopping activity in February. We will see weak near-term sales followed by a likely surge of existing-home sales in April, May and June. The real question is what happens in the second half of the year. If there is sufficient job creation, housing can become self-sustaining with stable to modestly rising home prices because inventory has been trending downward.”