Sales of existing homes fell in September, extending a pattern of declines and gains that show the industry continues to be buffeted by consumer pessimism and unemployment above 9 percent.
Purchases dropped 3 percent to a 4.91 million annual rate, matching the median forecast of economists surveyed by Blomberg News, figures from the National Association of Realtors showed today in Washington. The median priced dropped 3.5 percent from a year ago and about one in five real-estate agents polled said contracts had been cancelled, the group said.
Growing pessimism about the economy, unemployment above 9 percent and limited access to credit are keeping some Americans from taking advantage of near record-low mortgage rates. Foreclosures that are adding to the supply of homes for sale and driving down prices remain a hurdle for an industry that’s made little progress more than two years after the recession ended.
“Any recovery is going to be long and arduous,” said Anika Khan, an economist at Wells Fargo Securities Inc. in Charlotte, North Carolina. “With cancellations and distressed sales so high, we’ll continue to see downward pressure on prices.”
The median forecast was based on a survey of 78 economists. Estimates ranged from 4.7 million to 5.1 million.
