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Pending Home Sales Miss For 5th Month In A Row
Despite a modest 1.7% rise (after dropping 1.5% in December), Pending Home Sales missed expectations of a 2.0% rise - the 5th monthly miss in a row.
It appears NAR's chief economist Lawrence Yun, whose specialty is revising the script to goalseek any desired outcome until the deviation from reality is so massive the NAR has no choice but to do a massive backward-looking revision, has flip-flopped yet again: On existing home sales, NAR blamed the drop on lack of supply (bizarrely, just as prices dropped at the same time ) while on pending home sales, NAR says buyers overcame lack of supply.
Lawrence Yun, NAR chief economist, says for the most part buyers in January were able to overcome tight supply to sign contracts at a pace that highlights the underlying demand that exists in today's market. “Contract activity is convincingly up compared to a year ago despite comparable inventory levels,” he said. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth.”
At least he didn't blame snow in the seasonally-adjusted winter like he did for months in a row one year ago. Then again, there is always February...
In the meantime, the narrative spin must go on:
Yun also points to more favorable conditions for traditional buyers entering the market. All-cash sales and sales to investors are both down from a year ago1, creating less competition and some relief for buyers who still face the challenge of limited homes available for sale.
“All indications point to modest sales gains as we head into the spring buying season,” says Yun. “However, the pace will greatly depend on how much upward pressure the impact of low inventory will have on home prices. Appreciation anywhere near double-digits isn't healthy or sustainable in the current economic environment.”
Wait, realtors complaining that the 10 or so ultra-luxury houses for which there is some flipping demand have priced themselves out of the market? Unpossible.
And the best part - NAR forecasts:
Total existing-homes sales in 2015 are forecast to be around 5.26 million, an increase of 6.4 percent from 2014. The national median existing-home price for all of this year is expected to increase near 5 percent. In 2014, existing-home sales declined 2.9 percent and prices rose 5.7 percent.
And when the housing rebound fails to meet "expectations"... just blame groupthink.
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Lack of supply? Stop giving banks free money to hold forclosed homes off the market.
Supply. The fact that any asshole can build a structure and call it a house shows how finite the resource of a house is.
Guess who is telling Porkies?
Pending home sales hit highest level in 18 months http://www.cnbc.com/id/102460499But Bloomberg says "Pending Sales of Existing U.S. Homes Rise to Highest Since 2013"
http://www.bloomberg.com/news/articles/2015-02-27/pending-sales-of-exist...
I am so confused. STELLA!!!!
There's still 10 to 12 million (or moar) houses in shadow inventory. Foreclose and clear the piplelines. House prices will also reflect market conditions and correct in line with stagnant/dropping wages so those who want a house can buy one [and get into debt for life].
Everything's coming up roses!
Due to excellent fertilizer? There is quite a bit of it about...
Want to know how this is being spun?
CNBC: PENDING HOME SALES HIT HIGHEST LEVELS IN 18 MONTHS, SINCE AUGUST 2013
Spinning the lies all the time, just for you Janet!
We love you Janet! We love you! Now just put your head down in these guillatien. That's it. Now just relax.
As long as all these economic indicators (PMI, confidence level, home sales, etc.) are higher than zero, BTFATH!
Revised question from last post..what is the percentage of misses now? 92%? 93%?
There's never been a better time to buy a..... awe fuck it.
5 months in a row. Seems its been snowing that long for sure.
Managed economy is failing. The Central Banks won't let the bad players fail.
Demographics in play as baby-boomers dump and downsize to reduce costs.
Japan's Abeonomics.
When 'Treehouse Masters' and 'Tiny House Nation' are pulling eyes like they are...you know the traditional home market is fucked...
They overcame tight supply? WTF does that even mean? They paid up (but they didn't), or maybe they just found that 3 bed, 2 bath cardboard box.
PPPS .... Pent up Pending Penthouse Sales !
Pent up dup angst !
Fuck buying an overpriced house in a manipulated market. Let the debt ponzi of the feral federal reserve blow up!
No shit it missed. Those that bought in the last few years are going to learn what true price equilibrium is when they try to sell and find out they still over paid in a Fed controlled asset priced world. I look around my area at what homes are averaging and have to ask myself, who the fuck is buying at that price as the average wage won't support it. Expect supply of existing home sales to plummet as those currently on the market find out that they cannot get nearly the price they want and pull the listing as demand is damn near non-existent beyond banks selling foreclosures to each other. Only those that have to move due to circumstances beyond wanting to upgrade will remain.