The Closing that Almost Was

One third of Realtors say they've had at least one contract scuttled in October, up from 18 percent in September. Contracts have been cancelled for a number of reasons: Banks have declined mortgage applications; home inspectors have found problems; appraisals showed a home was worth less than the bid; a buyer lost a job before the closing.
Still, the October increase in home sales beat analysts' expectations. Some economists took that as a positive sign for the troubled market.
Home sales rose 1.4 percent last month to a seasonally adjusted annual rate of 4.97 million, the National Association of Realtors said Monday. That's below the 6 million that economists say is consistent with a healthy housing market and slightly ahead of last year's sales — the worst in 13 years.