Pending Homes Sales in US decline in May. | CountingPips Forex & Currency Trading Blog

July 8, 2008 - Forex Economic News

Pending Homes Sales in US decline in May.

U.S. Pending Homes sales declined in the month of May following April's unexpected rise according to the monthly report produced by the National Association of Realtors. The NAR report showed that pending home sales contracts signed by buyers declined 4.7 percent in May and falling more than market expectations had predicted. Market forecastors had predicted the sales data would decline by 3.0 percent for the month. May's decline follows a revised increase of 7.1 percent for April. Originally, April's data was reported last month as a 6.3 percent increase which had bested market forecasts expecting a 0.3 percent decline. May's pending home sales data is 14.0 percent below the sales level of May of last year.

NAR chief economist Lawrence Yun commented in the report about the state of the housing market, "The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy." Yun also highlighted that sales figures were varied depending on location as he stated that, "Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. Price conditions vary tremendously, even within a locality, depending upon a neighborhood’s exposure to subprime loans."

Tags: pending home sales, us economics, economy, forex trading

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