31 Dec 2015
US: Pending home sales index declined by 0.9% in November - Nomura
FXStreet (Delhi) - Research Team at Nomura, notes that the US pending home sales index declined by 0.9% in November, below expectations of an increase of 0.7%, after increasing by a revised 0.4% in October (previously reported as +0.2%).
Key Quotes
“Sales declined in the Northeast and West regions, but the decline in the West was outsized at 5.5%. Pending home sales tend to lead existing home sales by a couple of months, so the data today would usually be suggestive of a slower pace of existing home sales in December. However, possibly due to a one-off factor (new regulations that possibly led to delays in contract closings in November) that caused a steep drop in existing home sales in November, we do expect to see a bounce back in existing home sales in December.”
“On a y-o-y basis, the pending home sales index was up 5.1%, indicative of the solid improvement in the housing market this year. However, we expect the pace of sales to grow at a slower pace in 2016 as the tight supply of homes available for sale keeps some potential buyers off the market.”
Key Quotes
“Sales declined in the Northeast and West regions, but the decline in the West was outsized at 5.5%. Pending home sales tend to lead existing home sales by a couple of months, so the data today would usually be suggestive of a slower pace of existing home sales in December. However, possibly due to a one-off factor (new regulations that possibly led to delays in contract closings in November) that caused a steep drop in existing home sales in November, we do expect to see a bounce back in existing home sales in December.”
“On a y-o-y basis, the pending home sales index was up 5.1%, indicative of the solid improvement in the housing market this year. However, we expect the pace of sales to grow at a slower pace in 2016 as the tight supply of homes available for sale keeps some potential buyers off the market.”