"This year housing will remain a bright spot in the economy,"
- Yelena Shulyatyeva, a U.S. economist in New York at BNP Paribas
Pending sales of already existing homes in the world's largest economy dropped more than initially expected in February, indicating a pause in momentum for an industry, which usually provides a big boost the economy. According to the National Association of Realtors, an index of pending home sales tumbled 0.4% to 104.8 after a revised 3.8% increase recorded a month ago. Existing-home sales make up 93% of the housing market and are considered a leading indicator, therefore, a contraction is adding to concerns that the property market is not on the path of stable recovery.
"This year housing will remain a bright spot in the economy," said Yelena Shulyatyeva, a U.S. economist in New York at BNP Paribas and the top forecaster of pending home sales over the past two years, according to data compiled by Bloomberg. Low inventory is a "temporary phenomenon. As prices rise a little bit more, we'll see more supply and market forces will fix the situation."
"I've never seen a market like this, and I've been doing this for 19 years," said Jenny Ames, a real estate agent at Coldwell Banker in Chicago. "The top agents in the city, most of us, doubled our sales in 2012 compared to 2011. This year, we're again way ahead of where we were the year before."
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