Existing Home Sales Market Remains Flat

The existing home sales market looks to remain flat in the coming months based on the pending home sales index which fell a disappointing 1.4 percent in August. Three of four regions posted declines led by the Northeast at 5.6 percent with the South, which is by far the biggest housing region, down 2.2 percent. Only the West posted a gain, at 1.8 percent.

Existing home sales are being limited by lack of homes on the market which itself, however, reflects softness in home prices and general demand. But there is strength in housing and that's in new home sales and construction. Watch for Case-Shiller home price data on tomorrow's calendar.

Recent History Of This Indicator:
Pending home sales had been on a climb in the first half of the year, correctly signaling a subsequent climb for final sales of existing homes. But the index began to stall going into the summer, this time correctly signaling August's drop in existing home sales. A welcome pop higher of 0.5 percent is expected for the August report, one that would point to a bounce back for existing home sales in September and October