Monday, December 10, 2007

Pending Home Sales Rise Again

- Pending Home Sales for October rose .6% versus estimates of a 1.0% decline and an upwardly revised 1.4% gain in September.

BOTTOM LINE: The number of Americans signing contracts to buy previously owned homes unexpectedly rose for a second month in October, suggesting the slump in housing may become less severe, Bloomberg said. The National Association of Realtors forecast 5.697 million homes will be sold in 2008, an upward revision from last month’s estimate. Moreover, the median price of an existing home is forecast to rise .3% in 2008. Pending home sales rose 16% in the Northeast and 8.4% in the West. Purchases fell 7.8% in the South and 1.4% in the Midwest. The fact that pending home sales rose again despite recent credit turmoil is a big positive. I continue to believe home sales are stabilizing at lower, but high by historic standards, levels.

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