Existing home sales crashed but new home sales rebounded in November, which leaves today’s pending home sales as the deciding vote for just how apparently dismal the US housing market really is.. and the decision is – the housing market is in trouble as pending home sales tumbled 4.0% MoM (vs -1.0% exp) and October’s drop was revised even deeper…
That is the 6th straight month of pending home sales declines (and 12th of the last 13 months).
On a year-over-year basis, pending home sales collapsed 38.60%, the largest annual drop ever.
“There are approximately two months of lag time between mortgage rates and home sales,” Lawrence Yun, NAR’s chief economist, said in a statement.
“With mortgage rates falling throughout December, home-buying activity should inevitably rebound in the coming months and help economic growth.”
Pending sales fell in all four regions in the month, led by the Northeast and Midwest.
Outside of the COVID-Lockdown collapse, this is the lowest pending home sales index level ever…
Most problematically, pending home sales are often looked to as a leading indicator of existing-home purchases given properties typically go under contract a month or two before they’re sold