Following last week's collapse in new home sales (and last month's massive beat and surge in pending home sales), it was likely not a total surprise that pending home sales would slow, but the -1.1% MoM print is the worst in 2014 (and the biggest miss in 2014). The median existing home price continues to rise (up 4.3% year-over-year) but this is the slowest rate of gain since March 2012. NAR is quick with the excuses and this time.. no weather is to blame.
From biggest beat to biggest miss in 2014 . . .
And the excuse train is here...
Lawrence Yun, NAR chief economist, says the housing market is stabilizing, but ongoing challenges are impeding full sales potential. “Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved,” he said. “However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates.”
The Wealth Preserver & Wealth Maximizer can help you navigate and hedge the decline of the real estate market. Continue to pay close attention to your charts to determine when it is time to hedge against your a possible decline in your personal home or rental real estate.
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Livio S. Nespoli has been a broker, registered investment advisor, and financial publisher since 1985.