U.S. Pending Home Sales Rebound Much More Than Expected In January

Trading 27 fév 2019 Donner votre avis

After reporting a steep drop in U.S. pending home sales in the previous month, the National Association of Realtors released a report on Wednesday showing pending sales rebounded by much more than anticipated in the month of January.

NAR said its pending home sales index spiked by 4.6 percent to 103.2 in January after tumbling by 2.3 percent to a downwardly revised 98.7 in December.

Economists had expected pending home sales to rise by 0.4 percent compared to the 2.2 percent slump originally reported for the previous month.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

"A change in Federal Reserve policy and the reopening of the government were very beneficial to the market," said NAR chief economist Lawrence Yun.

He added, "Homebuyers are now returning and taking advantage of lower interest rates, while a boost in inventory is also providing more choices for consumers."

Despite the monthly increase, pending home sales in January were down by 2.3 percent compared to the same month a year ago.

NAR said three of the four major regions of the country experienced a decline compared to a year ago, while the Northeast enjoyed a slight growth spurt.

Looking ahead, Yun said the positive pending home sales figures in January are likely to continue, noting, "Income is rising faster than home prices in many areas and mortgage rates look to remain steady."

Next Tuesday, the Commerce Department is scheduled to release government shutdown-delayed data on new home sales in the month of December.


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