Pending home sales dropped 2.2% month over month versus a 0.5% expected increase. This is it lowest since 2014 in December. This is the 12th month in a row of annual sales declines deflating the bubbling and the biggest annual drop in 5 years.
Larry Yun had this to say, “The stock market correction hurt consumer confidence, record high home prices cut into affordability and mortgage rates were higher in October and November for consumers signing contracts in December. But with mortgage rates declining recently and the Fed less likely to raise borrowing costs, the forecast for home transactions has greatly improved.” Sure it is Larry.
NAR also forecasts a decline in annual home sales to 5.25 million this year from 5.34 million in 2018, which would mark the first back-to-back drops since the last recession. Not a good omen for the coming up release of January sales data next week.
Image source: Zero Hedge