Sharp decline in pending home sales for the month of December
the national Association of realtors is reporting that pending home sales for the month of December fell sharply:
- pending home sales -4.9% versus 0.5% estimate. The prior month was at 1.2%. Largest decline since May 2010
- YoY came in at 6.8% versus 10.3% estimate. The prior month was 5.6%
- South, -5.5%. Year on year +8.4%
- West, -5.4%. Year on year +8.0%
- Northeast -4.0%. Year on year +3.3%
- Midwest -3.6%. Year on year +4.5%
Pending home sales represent contract signings to purchase US previously owned homes. According to the NAR, the sales pace was slow by fewer listings of properties. The low supply is leading to higher prices and keep in perspective buyers from taking advantage of the lower mortgage rates, a strong job market and generally rising incomes.
Earlier today mortgage applications to buy homes increased to a 11 year high which runs counter to this data.
Pending home sales are often look to as a leading indicator of existing home purchases. About 80% pending home sales will become existing home sales transactions within 2 months.
