Pending home sales at lowest level since October 2011

The Pending Home Sales Index fell 0.8% in February to 93.9, is off 10.5% on a Y/Y basis, and at the lowest level since October 2011. No surprise, the NAR's Larry Yun blames the weather - the Northeast index fell 2.4%, the South index fell 4%. But the Midwest - no stranger to horrid February conditions - rose 2.8%.

Bill McBride offers up some additional reasons, namely fewer distressed sales and less investor buying. Previous: Blackstone slows home buying binge.

McBride also reminds what really matters for the economy and employment is new home sales and housing starts (tell that to real estate agents like RMAX and title insurers like FAF and FNF).

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Comments (8)
  • june1234
    , contributor
    Comments (4482) | Send Message
    Only "surprise" is why financial media always uses NAR data to report on the health of housing market. Its like asking honest Abe's used car lot what their opinion on auto sales is
    27 Mar 2014, 10:39 AM Reply Like
  • permanent
    , contributor
    Comments (493) | Send Message
    Bad like all recent data released so it fits right in line with what we had to expect.
    27 Mar 2014, 10:41 AM Reply Like
  • Tack
    , contributor
    Comments (16514) | Send Message
    The NAR has been reporting falling home sales since July '13.


    Why is it that you find the data suspect? What, wasn't the decline bad enough for you?


    What would you suggest for an alternate "more reliable" source?
    27 Mar 2014, 11:16 AM Reply Like
  • bbro
    , contributor
    Comments (11237) | Send Message
    The importance of job growth is first... then comes growth is positive and inventory is modest compared to total jobs outstanding....
    27 Mar 2014, 10:51 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13559) | Send Message
    Jobs growth is paltry and participation rates are down. And I agree with commenters that housing has been on the decline well before the cold snap for anyone that is willing to look at the facts and not construction applications or bad surveys on what the construction industry dreams housing demand will be.


    If you believe the weather is the cause for the slide in housing you might as well believe the 2008 real estate meltdown was caused by the sunlight beating down on rooftops because they are about as equally illogical given the facts.
    27 Mar 2014, 12:32 PM Reply Like
  • Guardian3981
    , contributor
    Comments (2535) | Send Message
    And yet the fed sees interest rates at 4% in a couple years?
    27 Mar 2014, 12:44 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13559) | Send Message
    That's because the dollar has been weakening even as EM markets are unsteady. The US treasury market is eroding while Americans are oblivious to what the Federal Reserve is failing at due to their propaganda about a strong economy in 2014 forcing up treasury yields even though this is a lie.


    The Federal Reserve is unwinding QE because foreigners are silently protesting with their feet by refusing to purchase more US treasuries. This will sooner or later result in American's having to buy the slack which will slow the economy, suck capital out of it, and cause inflation all at the same time.
    28 Mar 2014, 12:30 AM Reply Like
  • Tack
    , contributor
    Comments (16514) | Send Message


    You mean protesting, like this?


    And, your last sentence is backwards. If you suck money out of the economy and slow it down, you don't cause inflation.
    28 Mar 2014, 04:36 AM Reply Like
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