Uneven pending home sales data


July's pending home sales index of 109.5 is off 1.3% from June, but up 6.7% Y/Y. This data reflects contracts, not closings and thus leads sales by 45-60 days. Bill McBride notes buyers pushed to close in July because of rising mortgage rates, and expects closed sales in August to decline more than the pending home sales print would indicate.

The NAR's Larry Yun takes note of uneven data across the country - sizable declines in the Northeast and West, but steady to higher in the Midwest and South. This suggests to him higher interest rates and home prices in the high-cost regions of the coasts are having a measurable impact on sales activity. "More homes clearly need to be built in the West to relieve price pressures."

The Home Construction ETF (ITB -0.8%), the Homebuilders ETF (XHB) - which ought to be renamed the home supply ETF.

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Comments (2)
  • mobyss
    , contributor
    Comments (2596) | Send Message
     
    Oh boy - Larry Yun again!

     

    This guy was making excuses for the housing meltdown from mid 2006 through late 2009, finally admitting a problem in 2010.

     

    If he's back out as the mouthpiece for the NAR, then you know something bad is coming...
    28 Aug 2013, 11:43 AM Reply Like
  • june1234
    , contributor
    Comments (4357) | Send Message
     
    Expected by who. Bloomberg?
    28 Aug 2013, 12:01 PM Reply Like
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