June pending home sales rose by 5.3% while the May number was revised lower to 4.9% from 4.7%. While the number may look good, remeber that this is a 12.3% drop from last year. This still does not mean housing has bottomed, although that won't stop most analysts from calling a bottom in housing.
Lawrence Yun, NAR chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range. “The vacillation of data from one month to the next indicates a housing market in transition,” he said. “The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery. With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009.”
It's not a tax credit for the first time home buyers. It's a interest free loan!
The PHSI in the South jumped 9.3 percent to 92.4 in June but is 16.6 percent below June 2007. In the West, the index rose 4.6 percent to 101.0 in June but remains 1.7 percent below a year ago. The index in the Northeast increased 3.4 percent to 79.6 but is 15.4 percent below June 2007. In the Midwest, the index rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.
Compared to last year, the nubers are still horrible. Now, the labor market is deteriorating and interest rates are going higher.
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