The number of new deals under contract that month fell from October, a sign of vulnerability in the housing recovery.
The number of homes placed under sales contracts tumbled in November from the previous month, presenting fresh evidence that the nascent housing recovery could be poised for a dip in the new year.
The National Assn. of Realtors said Tuesday that its pending home sales index — a forward-looking indicator based on contracts signed in November — fell 16% to 96 from an upwardly revised 114.3 in October. But the index still was 15.5% higher than for November 2008, when it was 83.1.
The housing market picked up steam last year as the federal government pushed to lower interest rates, increase loans to first-time buyers from the Federal Housing Administration and provide an $8,000 tax credit for first-time buyers.
But experts fear that a slowdown in buying activity coupled with a possible wave of foreclosures this year could cause the values of homes to drop again.
The data on contracts follow a recent government report that new home sales plunged 11.3% in November.
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