ECON: Pending Home Sales Weaker Than Expected
- Pending Home sales Index +0.2 vs +1.0 forecast
- Index at 101.7 vs 101.5 previously (revised down from 102.1)
- Down 1.6 pct from Nov 2012
- Market Reaction: none so far.
Pending home sales stabilized in November with a slight gain, according to the National Association of Realtors. Monthly increases in the South and West offset declines in the Northeast and Midwest.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, inched up 0.2 percent to 101.7 in November from a downwardly revised 101.5 in October, but is 1.6 percent below November 2012 when it was 103.3. The data reflect contracts but not closings.
Lawrence Yun, NAR chief economist, said the market is flattening. “We may have reached a cyclical low because the positive fundamentals of job creation and household formation are likely to foster a fairly stable level of contract activity in 2014,” he said. “Although the final months of 2013 are finishing on a soft note, the year as a whole will end with the best sales total in seven years.”