Signed contracts for existing homes fell nationwide in October for the fifth straight month, further evidence the housing market has slowed after a frenzied rebound earlier this year.
The National Assn. of Realtors said Monday that its pending sales index, adjusted for seasonal swings, dropped 0.6% from September and was down 1.6% from its October 2012 level. The trade group said the government shutdown in early October, declining affordability and limited inventory curbed sales.
The index, which reflects signed contracts whose sales haven't yet closed, is at its lowest level since December of last year.
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“We could rebound a bit from this level, but still face the head winds of limited inventory and falling affordability conditions,” Lawrence Yun, the group’s chief economist, said in a statement.