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.
Those who give up on finding a job might not be “unemployed” according to government statisticians, but they sure aren’t buying houses.
YEp, just like the “unexpected” FaceBook crash after Obumber endorsed it...
That was a given.
What a bunch of liars.
ALl these analysts on TV should be tried for enabling fraud.
With Obama 2.0 coming up, I am sure those who are unemployed are going to be able to apply for houses so that his statistics perk up before elections...
Never let a good lot of stupid and inept people professing ignorance go to waste...
How many more months until they're GONE!?
How many more months until they're GONE!?
Give Larry a break. He didn’t say when they’d “trend gradually up”.
I think what Yun is saying is that politicians are going to try something else, hope and change. Maybe they are going to push legislation to force yet again banks to make loans to unemployed people, so the stats go well for Zero during (re)elections, and so that Romney and the GOP-E is again put on the defensive to not align with evil conservatives who profess fiscal responsibility and preventing people from getting free homes.
There, and with TARP and all, Bush and co. are sure it will be paid back eventually... sure...
We know the scenario and how they operate, from illegals black mail, to Obamacare and ads showing old ladies thrown off a cliff with baby killing GOP-E refusing abortions.
Could be that buyers are rejecting more offers and beginning to hold out for higher price.
On November 7, 2012, we can all expect that the word of the day will be “UNEXPECTED!”
Every bit of bad, but perfectly predictable, economic news is “unexpected’ by this crowd. I’m about 2/3 of the way through Reading ‘The Amateur’ and I truly believe that this stuff truly is unexpected by these...amateurs. obama really thinks he can change the world just because he wants to. He really thinks if he says the ecomony’s in a recovery...there will be a recovery! The guy is an amazingly clueless and self absorbed narcissist. Truly.
Predicted a 0.1% rise-and that in itself is a ridiculous prediction just so they could say for a week before the figures were actually released a rise was expected-but in actuality there was a 5.5% DECREASE? Not even close folks.
I clicked the thread to count the uses of the word “unexpected” in the first 50 posts. I wonder which will be the funniest?
The pic of Marx in the dunce cap in the upper right corner is an especially nice touch. $:-)
“FOUR MILLION JOBS CREATED” is the Fraud’s latest bluster.