Skip to comments.Pending Home Sales Unexpectedly Slide in April
Posted on 05/30/2012 7:43:30 AM PDT by mykroar
Contracts to purchase previously owned homes unexpectedly fell in April to a four-month low, undermining some of the recent optimism that the housing sector was touching bottom.
The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed in April, fell 5.5 percent to 95.5, its lowest level since December.
Economists polled by Reuters had expected signed contracts, which lead existing home sales by a month or two, to rise 0.1 percent after a previously reported 4.1 percent gain.
The housing market has been one of the U.S. economy's weakest links as it recovers from the 2007-09 recession, but many economists think the sector will actually add to economic growth in 2012 for the first time since 2005.
The report on pending contracts in April could temper some of that optimism.
Millions of Americans owe more on their homes than they are worth, making them more cautious about spending and holding back the economic recovery.
After a debt-fueled housing bubble, prices have fallen about a third since 2006 according to some measures and the housing market continues to be saddled with an oversupply of unsold properties.
There have been some signs that the deflation in prices could be bottoming out. On Tuesday, the S&P/Case Shiller composite index showed home prices rose for the second month in a row in March.
But Wednesday's report showed contracts fell 12 percent in the western United States and 6.8 percent in the South. Contracts edged lower in the Midwest and rose slightly in the Northeast.
The National Association of Realtors downplayed the declines.
"All of the major housing market indicators are expected to trend gradually up," said Lawrence Yun, chief NAR economist.
Signed contracts were up 14.4 percent in the 12 months to April.
Gee, who saw this coming? LOL!
There’s that pesky “unexpectedly” again. Those statistics sure are sneaky.
If we actually played the game, we’d all have cirrhosis.
Seeing just the opposite in my area in a big way.
We’ll have to start calling it the “U” word.
Based on what? The unemployed and underemployed are going to use what to pay mortgages?
Sorry, Lawrence, I can do better pulling projections out of my a$$... you're fired!
I didn’t think that had room to “slide” Otherwise, if their were any positive indicators it would be unexpected. A miracle really.
I doubt that even heavy dope-smokers have had “recent optimism.” That is purely a figment of the msm’s fevered imagination.
Barry is about to ride that double-dip onto the ash heap of history
There’s that pesky word again!...unexpectedly!...Just like Obama’s legacy going unexpectedly into the crapper!
How can this guy be so wrong for so long and still keep his job. Here's a realistic take on the housing market. Note he doesn't even go into the shadow inventory held by the banks. Bagdad Bob has more credibility than Lawrence Yun.
But that would be unexpected!
Buh buh but, sales will rise when all those people who were waiting for school to be over before moving to their new jobs? Jobs? oops! Guess that’s a sore subject, too.
EVERYTHING that is reported by ANYONE with ANY vested interest in any market area, jobs sector, government affilation, or media collusion is a goddam lie! Why can’t people see this?
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