Pending Home show steep fall in November – But there is a Silver Lining!
The National Association of Realtors reported on Tuesday that pending home sales of previously owned homes slid 16% to 96 in November from an upwardly revised 114.3 in October. This was a considerable drop in activity from one month to the next but it was largely expected due to the scheduled expiration in November of the first time home buyer tax credit.
Economists were unsure how much home sales would be affected in November due to the scheduled expiration of the credit which was subsequently extended but it proved to be considerable. Pending home sales were down across all regions of the country.
The data shows how fragile the housing markets recovery is and how dependent the market is on government support at this time. There are however positive signs of recovery in the market if you look closely. Home prices continue to inch up higher in many regions of the country. And the NAR’s pending home sales index for November was 15.5% higher than it was a year earlier. All good signs of a slow and hopeful recovery.
