WASHINGTON (AP) - The November reading of an index that tracks pending U.S. home sales is forecast to fall for the third straight month as buyers held off on home purchases while the stock market sank and the economy worsened.

The National Association of Realtors' report on pending sales of existing homes is expected to come in at 88, down 1 percent from October's reading of 88.9, according to economists surveyed by Thomson Reuters. The report is scheduled to be released Tuesday at 10 a.m. EST.
Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.

November's reading should provide a preview of December's existing home sales numbers, which the Realtors group is scheduled to release on Jan. 26.
Despite severe economic and housing market troubles, the index is still above its record low of 83, reached in March 2008. A reading of 100 is equal to the average level of sales activity in 2001, when the index started.

U.S. existing home sales plunged to a rate of 4.49 million in November, down 8.6 percent from October. When the final tally for 2008 is complete, it is likely to be the worst year for home sales in at least in a decade. Plus, with job losses mounting, there appears to be no quick turnaround coming this year.

The median sales price tumbled 13 percent to $181,300 in November, the largest decline since the Realtors' record-keeping began 40 years ago.

The deteriorating economy makes the timing of any recovery in sales a moving target. Sales are growing in foreclosure-plagued areas like Las Vegas and Los Angeles, but are still sinking in most of the country.

The Realtors group estimates that 45 percent of existing home sales are now foreclosures and other distressed properties.

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