Realtors' group calls on Obama to adopt housing stimulus measures WASHINGTON (MarketWatch) -- Existing-home sales retreated last month as the weak stock market and a poor U.S. economic backdrop caused buyers to pull back, according to the National Association of Realtors on Monday. Resales of U.S. single-family homes and condominiums fell 3.1% in October to a seasonally adjusted annual rate of 4.98 million units, the trade group said. Resales have sunk 1.6% in the past year. Economists surveyed by MarketWatch had expected sales to fall to 5 million, very close to the actual number of units. Ian Shepherdson, chief U.S. economist at High Frequency Economics, noted that the drop in October sales didn't breach the "gentle upward trend" in sales. But he pointed out that much of the activity is now related to foreclosures. Along these lines, the NAR estimates that 45% of all transactions are tied to properties in foreclosure. "The private market is still very weak indeed, and the next few months represent a severe test in the wake of the plunge in stocks and consumer confidence," Shepherdson said. The inventory of unsold homes on the market as tracked by the NAR fell 0.9% to 4.23 million, representing a 10.2-month supply at the current sales pace. Meanwhile, the median sales prices fell 11.3% in the past year to $183,300, the October data showed. This marked the lowest sales price since March 2004. Some of the areas hit the hardest by the downturn are starting to see renewed activity, said Lawrence Yun, chief economist at the NAR. Prices have fallen so far in these areas -- primarily Florida and California -- that buyers now sense there are bargains to be had. Yun called on the incoming administration of President-elect Barack Obama to fund a $50 billion stimulus program for housing by lowering interest rates on new mortgages. Essentially, the government would pay points on new mortgages so buyers could qualify for lower rates. In addition, the NAR would support direct purchases of long-term mortgages in the open market to bring down long-term mortgage rates, Yun said. Obama will convene his economic team later Monday in Chicago. See full story. A closer look at the October data show that sales of existing homes fell in all regions of the country. "Many potential buyers appear to have withdrawn from the market due to the stock-market collapse and deteriorating economic conditions," Yun said.

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