US Pending Home Sales Unexpectedly Tumble In June “Due To Huge Spike In Prices”

US Pending Home Sales Unexpectedly Tumble In June “Due To Huge Spike In Prices”

After rebounding surprisingly strongly in May (despite weakness in new- and existing-sales), pending home sales were expected to be unchanged in June, but instead they dropped 1.9% MoM, pushing pending home sales down 3.29% YoY

Source: Bloomberg

“The moderate slowdown in sales is largely due to the huge spike in home prices,” Lawrence Yun, chief economist at the NAR, said in a statement.

“Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat.”

So in June, only existing homes saw sales rise and that was de minimus from a notably lower revision in May…

Source: Bloomberg

All regions saw sales slow as pending home sales decreased in the South and West, and rose 0.5% in the Northeast and 0.6% in the Midwest last month. The biggest drop was in the West, with a decline of 3.8%, the most since February. The South retreated 3%.

Source: Bloomberg

If housing data is starting to weaken now, imagine what happens when The Fed starts to taper… or, heaven forbid, raises rates?

Tyler Durden
Thu, 07/29/2021 – 10:05

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