Thursday, October 01, 2009

Record 7-Month Streak for Pending Home Sales

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, rose 6.4% to 103.8 from a reading of 97.6 in July, and is 12.4% above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.

Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said. “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month.”

1 Comments:

At 10/01/2009 3:28 PM, Anonymous Pine said...

Light vehicle sales plunged in September. Who called that one over a month ago?

The MBA reported mortgage applications fell 2.8 percent in the week-ending 25 Sep. Not a word of it on CD.

The Chicago Purchasing Managers Index fell in September. Production and new orders fell while inventories increased. Their prices rose 1.3 percent and they increased employment only 10 bps.

There were 2690 mass layoff events in August (seasonally adjusted), up 533 from July.

The economy isn't as pretty without rose-coloured lenses.

 

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