The reason for the real estate evaluators to be so far off their predictions was likely to due to foreclosure news.  Credit Suisse analyst Dan Oppenheim said his survey of real estate agents showed signs of dismal sales in October, but those real estate agents might have missed the foreclosures being sold by mortgage lenders and banks in bulk or through auctions in the distressed markets of Southern California, Las Vegas Nevada and most of Florida.  California short sales continued to dominate the pending real estate sales.

The better than expected pending sales are a mixed blessing. The home foreclosure sales continue to drive down prices and are taking away business from home builders and homeowners trying to sell their homes. But it does suggest that the foreclosure overhang is being whittled away, especially in the South – primarily Florida – where pending home sales were up 7.8% in October.