Golden Sun eXtra Your Local News Source, Mohave County, AZ

The number of people preparing to buy a home fell sharply at year end, an unsettling new sign that the housing market may be headed for a "double-dip" downturn thru the winter.

The figures Tuesday came after a similarly discouraging report on new home sales, illustrating how heavily the housing market depends right now on government help.

In October, buyers raced to get contracts signed in time to take advantage of a tax credit for first-time homeowners that was set to expire. It has since been extended into spring -- and now prospective buyers are taking their time.

The National Association of Realtors said its seasonally adjusted index of sales contracts fell 17% from October, after nine months of gains. Economists surveyed by Thomson Reuters had expected only a 2 percent drop.

The last housing downturn helped drag the nation into the worst recession in decades. The expected dip in home sales and prices this winter appears to pose less of a threat to the broader economy. Orders to U.S. factories, for example, posted a big gain in November, the Commerce Department said Tuesday. So while the housing market remains vulnerable, makers of steel, computers and chemicals are mounting a surprisingly robust rebound.

Charlotte Wester, a real estate agent with US Preferred Realty in Mesa, AZ said homes are so affordable that houses are drawing multiple bids and often selling over the listing prices. One house in her area sold for under $50,000 last fall. "I can't see how our prices could get any cheaper," she said.

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