The National Association of Realtors came out with its pending home sales data for November a little while ago. Here’s what the numbers looked like:
* Pending sales plunged 16%. That compared with an expected decline of 2%. Yikes!
* On a year-over-year basis, the pending sales index actually rose 15.5% to 96 from 83.1.
* Regionally, sales fell across the country. Sales dropped 2.7% in the West, 15% in the South, and 25.7% in both the Northeast and Midwest.
Pending home sales plunged by a much larger than expected margin in November. That’s the bad news. The good news? It’s largely tax credit related. Since the period covered in this report, the first-time buyer credit has been expanded and extended. We’ve also seen indicators of unemployment and economic growth stabilize over the past few months. So after we work through this period of housing indigestion, we’ll likely see sales rates gradually pick up again and home inventories gradually decline.
{ 2 comments… read them below or add one }
US Treasury has lifted the credit limit on Fannie and Freddie. I surmise this is to support the shadow inventory expected to hit the market. Wouldn’t the resurgence of the shadow inventory keep the inventory number seems unmoved (not declining despite sales increase)?
Hi Mike L– I haven’t posted recently because everything out of the Fed is such a JOKE regarding housing. It is all getting rapidly worse as I knew it would during our debates. I liked debating with you and it helped me understand how much the Fed lies.
Especially about housing…unemployment…GDP…inflation…Hmmm… Come to think of it, they lie about everything!
))
It’s all to keep the Obama Money Making Copy machine burning 24 hours a day, 7 days a week. And these lies actually work!
Anyway… as you can see now, foreclosures are going to swamp the market but Obama will come to the rescue! He now has the authority to print UNLIMITED funds for the Cash for Trash program.
What a great country. We actually have a Money Tree.
)) –MichaelM