Pending Home Sales Drop

Existing home sales have been leveling but the signal from pending home sales points to a new downturn. The pending home sales index for November fell 0.7 percent to 101.4 which is under Econoday's consensus range and compared to expectations for a 1.5 percent gain. Year-on-year this index is down 7.7 percent vs a 7.0 percent decline in final sales of existing homes.

Pending sales in November posted low single-digit contraction in both the South and Midwest to offset low single-digit gains in Northeast and West. Pending sales take one to two months to close with today's report offering advance indications for final resales in December and January.