The number of homebuyers who agreed to purchase an existing home sank to a new low in January as economic woes turned them away from the staggering housing market, the National Association of Realtors said Tuesday.
The group’s seasonally adjusted index of pending sales contracts fell 7.7 percent to 80.4 in January from a downwardly revised December reading of 87.1.
January’s reading was far worse than the 85.1 economists expected, according to Thomson Reuters, and came in below the previous record low of 83.1 in November.
“It really does all come back to the job market,” said Mike Larson, a real estate analyst with Weiss Research, in a research note. “The latest evidence suggests we’re seeing little relief on that front. Jobless claims are rising sharply and layoff announcements are coming fast and furious.”
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