bee Calculated Risk On 1/30/2025 10:00 AM AM
From the clown: Pending Home Sales Fell 5.5% in December
Pending Home Sales Retracted 5.5% in December – Following four conseecutive months of increases – according to the National Association of Realtors®. All Four Us Regions Experienced Month-Over-Month Losses in Transactions, with the most significant fall in the West. Year-Over-Year, contract signings reduced in all four US Regions, with the Midwest Seeing the largest decrease.
The Pending Home Sales Index (PHSI)*-A Forward-Looking Indicator of Home Sales Based on Contract Signings-Slid 5.5% to 74.2 in December. Year-Over-Year, Pending Transactions Declined 5.0%. Last Year’s Cyclical Low Point occurred in July 2024 at 70.2. An index of 100 is equal to the level of contract activity in 2001.
“After four straight months of gains in contract signings, one step back is not welcome news, but it’s not entirely surprising,” said Nar Chief Economist Lawrence Yun. “Economic data never moves in a straight line. High mortgage rates have not significantly dented housing demand due to greater numbers of cash transactions. ”
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The Northeast Phsi Fell 8.1% from last month to 62.3, down 1.3% from December 2023. The Midwest Index Shrunk 4.9% to 74.3 in December, Down 6.9% from the previous year.The South PHSI slipped 2.7% to 90.6 in December, down 5.1% from a year ago. The West Index tumbled by 10.3% from the prior month to 57.7, Down 5.1% from December 2023.
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Note: Contract Signings usually lead sales by about 45 to 60 days, so this would usally be for closed sales in January and February.