Friday, November 05, 2010

Pending Home Sales Index declines 1.8% in September

by Calculated Risk on 11/05/2010 12:30:00 PM

Earlier employment posts:

  • October Employment Report: 151,000 Jobs, 9.6% Unemployment Rate
  • Employment-Population Ratio, Part Time Workers, Unemployed over 26 Weeks
  • Graphics Gallery for Employment

    From the NAR:
    Pending Home Sales Slip but Modest Recovery Expected in 2011
    The Pending Home Sales Index,* a forward-looking indicator, slipped 1.8 percent to 80.9 based on contracts signed in September from an upwardly revised 82.4 in August. ... The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
    August was revised up slightly from 82.3.

    This suggests existing home sales in October and November might be slightly lower than in September and months-of-supply will probably still be in double digits putting downward pressure on house prices. As usual, I'll take the under on the NAR forecast for 2011 ("more than 5.1 million existing home sales" in 2011).