An index that is a gauge for future home sales dropped 3.2 percent in October to its lowest reading since March, the National Association of Realtors reported today. David Lereah, NAR's chief economist, said a decline was expected. "The drop in pending home sales is an affirmation that we are experiencing a modest slowing in the housing sector," he said. "The index is pointing to a soft landing for home sales, which will help to correct the inventory shortages that have dominated housing over the last five years. This should restore balance to the market." The Pending Home Sales Index, based on contracts signed in October, fell to a level of 123.8 from a reading of 127.9 in September, and is 3.3 percent below October 2004, according to the announcement. The index is based on pending sales...
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