Pending Home Sales Basically Flat

Sales of existing homes popped higher in December but a further gain for January is uncertain given only a 0.1 percent rise in pending home sales which follows a downward revised 1.1 percent decline in November. It usually takes one to two months for contract signings to close with greater delays possible given new mortgage documentation rules that were implemented in November. Also raising doubts whether January will prove to be a solid month is this report's narrow breakdown with the Northeast, the smallest of the housing regions, the only one in the positive column in the month, at 6.1 percent. The other three regions show declines with the sharpest in the West at minus 2.1 percent. Despite this report, recent news on the housing sector has been positive including gains for sales and also respectable appreciation for prices.

Recent History Of This Indicator:
Pending home sales are expected to rise 0.8 percent in December and point to rising strength for final sales of existing homes which, held down by lack of homes on the market, slowed going into year-end. However up-and-down the sector has been, housing has been a positive contributor to the nation's economy.