US Pending Home Sales Increased 0.8% in February But Down 21.1% Year-over-year As Fed Retreats (Negative YoY Growth For 20 Of Last 21 Months)

Confounded Interest ^ | 03/29/2023 | Anthony B. Sanders

[Kaiser8408a]

Pending home sales grew in February for the third consecutive month, according to the National Association of REALTORS®. Three U.S. regions posted monthly gains, while the West declined. All four regions saw year-over-year decreases in transactions.

The Pending Home Sales Index (PHSI)* — a forward-looking indicator of home sales based on contract signings — improved 0.8% to 83.2 in February. Year-over-year, pending transactions dropped by 21.1%. An index of 100 is equal to the level of contract activity in 2001.

More notably, the YoY growth rate has been NEGATIVE for 20 of the last 21 months. And 15 straight months.

Biden’s energy policies + insane Federal spending = inflation = Fed slowing M2 Money growth. Hence, pending home sales YoY is down -21.1%.

[Kaiser8408a]

Biden is the stupidest man in DC and that is saying a lot.

[Diana in Wisconsin]

Lots of single-family homes and duplex homes being built and occupied in my part of the world (SW Wisconsin) but TONS of huge apartment complexes on all of our Small Town Main Streets, with shops below, are going for $1,200.00+ a month in rent (Apartments; not sure what Commercial rents are) and both the apartments and the shops are mostly vacant. They all look alike, so I’m sure it’s the same firm building them all over the place. They’re ugly and look like hospitals or loony bins.

My fear is that those buildings will end up as Section 8 housing and every quiet downtown area in Wisconsin is slated to be a No-Go Zone in the future. :(

https://www.wra.org/HousingStatistics/

[TheBattman]

Imagine that. Lets see:

1. Wages are not even close to keeping up with real inflation - check
2. Inflation making construction far more expensive. - check
3. The Fed still raising interest rates to the highest in decades - making home buying completely unaffordable - check

Who would have thought that higher home costs plus higher interest rates, on top of decreased buying power of wages would make home sales lower??? duh.

[webheart]

YoY!

[Clemenza]

In Northern New Jersey and Westchester County, NY, houses are selling for up to 20% above listing for single family. We have negligible inventory and the areas in question were built out 60 years ago.