Pending Sales Of Existing Homes Down Sharply

The outlook for the housing sector has turned lower this week, first on Monday's very weak new home sales report followed by today's September index on pending sales of existing homes which is down a very sharp 2.3 percent. The report cites lack of low priced homes on the market as a key negative that is pulling down total sales and keeping out first-time buyers. Uncertainty in the financial markets is also cited, perhaps making buyers take a wait-and-see approach.

Year-on-year, pending sales are up only 3.0 percent which is very weak and far below the nearly double-digit pace for final sales of existing homes. All regions show low to mid single-digit declines in the month.

The housing sector, which just last week seemed a certain area of strength, may now be a liability for the economy.

Recent History Of This Indicator:P
Pending home sales are expected to bounce back from August's 1.4 percent decline with a 1.0 percent gain in September. Sales of existing homes, boosted by low mortgage rates and moderate prices, have been strong this year though they did slow during the summer.