Pending Home Sales
June Pending Home Sales showed no negative impact to the rise in mortgage rates and responded instead to lower prices and tax incentives as it rose 3.6% m/o/m, well above estimates of a gain of .7%. It is a measure of contract signings and a precursor to Existing Home Sales (closings). The two areas with the biggest foreclosures, the South and the West, saw the largest gains. Pending sales in the South rose 7.1% m/o/m and 2.9% in the West. Gains in the Northeast and Midwest were modest. Y/o/Y, pending sales are up 9.2%. In June, distressed closings made up about 30% of existing home sales, down from the trend of 45%ish in the prior months. Now, with many foreclosure moratorium’s now over, foreclosure sales may increase. In terms of getting to a bottom and clearing the market, foreclosure sales are the fastest way as bidding wars are being seen in the lower cost homes. Also of influence was the $8,000 tax credit that is expiring soon.
Tweet
Facebook
Reddit
Digg this!
August 4th, 2009 at 11:18 am
[...] News Sources wrote an interesting post today onHere’s a quick excerptJune Pending Home Sales showed no negative impact to the rise in mortgage rates and responded instead to lower prices and tax incentives as it rose 3.6% m/o/m, well above estimates of a gain of .7%. It is a measure of contract signings and a precursor to Existing Home Sales (closings). The two areas with the biggest foreclosures, the South and the West, saw the largest gains. Pending sales in the South rose 7.1% m/o/m and 2.9% in the West. Gains in the Northeast and Midwest were modest. Y/o/Y, p [...]
August 4th, 2009 at 2:11 pm
realtors here have been pushing the tax credit hard. any bets it won’t die its first death?