Record Pending Sales Spells Confusion
The Pending Home Sales Index, based on contracts signed in August, rose 3.2% to 129.5 and beat the previous all-time record of 128.1 set in October 2004. The index was 4.7% higher than a year ago. NAR’s Chief Economist, David Lereah:
“Home sales remain at remarkable levels, but there is ambiguity regarding pending home sales in parts of the South since many transactions in the disaster zone will be postponed. It’s unclear how much of that disruption may be offset by spiking sales in surrounding areas,” he said. “Even so, national sales should stay close to record levels over the next two months and housing will continue to support the economy.”
This, frankly, leaves us scratching our heads. Media reports are screaming ’slowdown’, but the data indicates otherwise. Is this the case of overly eager reporters calling a market top based on anecdotal evidence or did fence-sitting buyers finally capitulate in August?