Kansas City Real Estate Network

The National Association of Realtors said Tuesday its seasonally adjusted index of sales agreements fell 16% from October to a November reading of 96. It was the first decline after nine straight months of gains and the lowest reading since June.

The report indicates consumers are taking their time following the extension of a tax credit deadline. The incentive of up to $8,000 for first-time buyers was set to expire at the end of November. But Congress pushed back the date and broadened the program with a new credit of up to $6,500 for buyers who relocate.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer of future sales. Pending sales were down 26% from October in the Northeast and Midwest, 15% in the South and 3% in the West.

The housing market had been rebounding from the worst downturn in decades, aided by aggressive federal intervention to lower mortgage rates and bring more buyers into the market. Home resales surged last month to the highest level in nearly three years.

But concerns remain that the market recovery will stall as the federal programs are phased out.

Another report showed that orders to U.S. factories posted a surprisingly big gain in November, reflecting strong demand in a number of industries from steel and industrial machinery to computers and chemicals.

The advance was double what had been expected and provided further evidence that manufacturers are beginning to pull out of their steep slump.

But what does that mean to all of us in Kansas City?

  
Blog post written by: Dowell Taggart Team of RE/MAX Best Associates.