WASHINGTON (AP) — Fewer Americans signed contracts to buy homes in January, the latest evidence that the housing market is struggling to rise above depressed levels.
The National Association of Realtors says its index of sales agreements for previously occupied homes fell 2.8% last month to a reading of 88.9, the second straight monthly decline.
The reading was higher than the 75.9 reading from June, the low point since the housing bust. But it's below 100, which is considered a healthy level. The last time it reached that point was in April, the final month people could qualify for a home-buying tax credit.
Sales of previously owned homesfell last year to the lowest level in 13 years. Economists say it will be years before the housing market fully recovers. High unemployment, strict lending standards, and a record number of foreclosures are deterring potential buyers, who fear homeprices haven't reached the bottom.
Contract signings of previously owned homesare usually a good indicator of where the housing market is heading. That's because there's usually a one- to two-month lag between a salescontract and a completed deal.
Steven Wood, chief economist for Insight Economics, said the tax credits have pulled home saleson a "rollercoaster ride over the past two years" and that saleshave not yet found a steady level.
