According to the National Association of Realtors, the Pending Home Sales Index dropped 16 percent in the month, decreasing from a revised 114.3 in October to 96 on the scale. Though pending sales dropped month-to-month, a comparison to November of 2008 shows that they are 15.5 percent higher.
Lawrence Yun, chief economist for the NAR, said that gains in home sales probably won't be seen until early spring as more consumers take advantage of a tax credit from the government.
"The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own," Yun said.
The government's $8,000 credit for first-time homebuyers was recently extended to the end of April after it was set to expire in November. The tax credit was also extended to those who were looking to buy a new primary residence, and gives those consumers $6,500 for doing so.
