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Pending Home Sales Rise In March As Weather Effect Dissipates

Tyler Durden's picture




 

Following the plunge in new home sales (and surge in existing home sales), pending home sales rose slightly more than expected in March. Up 1.1% MoM (vs +1.0% exp), this is still a slowing in the pace of appreciation from February's upwardly revised 3.6% jump. A 13.4% surge YoY (NSA) has prompted exuberance from NAR as they throw off any vestiges of weather-related problems and proclaims the spring housing market is back (except Northeast saw sales drop 1.5% - for the 4th straight month; and The Midwest fell 2.5% MoM).

 

Pending Home Sales YoY (non-seasonally-adjusted) surged...

 

As NAR comments,

...contract signings picked up in March as more buyers than usual entered this year's competitive spring market. "Demand appears to be stronger in several parts of the country, especially in metro areas that have seen solid job gains and firmer economic growth over the past year," he said. "While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news. It indicates this year's activity is being driven by more long-term homeowners."

Charts: Bloomberg

 

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Wed, 04/29/2015 - 10:12 | 6042546 Glass Seagull
Glass Seagull's picture

 

 

 

There was a time when "weather" and "strikes" and "strong dollar" were known as components of the "economy." 

 

Now, they're just excuses.

Wed, 04/29/2015 - 10:15 | 6042558 Chuck Knoblauch
Chuck Knoblauch's picture

all is well

sleep

Wed, 04/29/2015 - 10:16 | 6042568 ParkAveFlasher
ParkAveFlasher's picture

Healthcare vs. real estate is the tug-o-war.  Remember when people had equity and then died at 60 or 70?  That will never be again.  Their passage will be forestalled by increased care and thus the velocity of property transfer generated by their collective passing will continue to slow to equilibrium. 

Wed, 04/29/2015 - 10:19 | 6042575 SheepDog-One
SheepDog-One's picture

GDP bummer already forgotten upon timed release of house sales report.....aaaaand SCENE! Cut and print, that's a wrap.

Wed, 04/29/2015 - 10:22 | 6042586 Atomizer
Atomizer's picture

The weather in Philadelphia has been ape raped. 

Wed, 04/29/2015 - 10:24 | 6042589 MFL8240
MFL8240's picture

the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news.

 

A slaughter in the making!

Wed, 04/29/2015 - 10:25 | 6042592 corporatewhore
corporatewhore's picture

who can afford to buy at these asked prices?

only the stupid, deliberately obtuse or insane.

Wed, 04/29/2015 - 10:28 | 6042603 Atomizer
Atomizer's picture

My mistake, can't keep up with new Obama civil outbreak plans. Meant Baltimore. The above statement is true. Loose lips sinks ships. He is a madman. 

Wed, 04/29/2015 - 10:29 | 6042609 SheepDog-One
SheepDog-One's picture

'Buying'....LMAO who you trying to fool with those NINJA loans? Come on.

Wed, 04/29/2015 - 10:39 | 6042659 corporatewhore
corporatewhore's picture

i'm trying to find who is offering a ninja loan?

is it nationwide or just local?

Wed, 04/29/2015 - 12:24 | 6043088 SheepDog-One
SheepDog-One's picture

Prior ZH articles about nothing down mortgages, in fact even paying you if you take out a mortgage....come on. Then there's the 'cant pay? Just stay' mortgage too, how many haven't made a mortgage payment in years and still in their house?

Wed, 04/29/2015 - 10:41 | 6042670 scubapro
scubapro's picture

 

 

pending home sales, which are contracts signed last month, based on a decision made (to buy something) 1-2 months previous to that is a lagging indicator closely related to 'sentiment'.    buybacks, pending sales, sentiment,  are all items that can move up right into the teeth of a recession/correction, then collapse.    

Wed, 04/29/2015 - 10:49 | 6042709 Ignorance is bliss
Ignorance is bliss's picture

I dunno, it might be better to buy a home now before the wave of Californians and Asians snap up all the realestate. Then let inflation eat away at the debt.

Wed, 04/29/2015 - 11:35 | 6042922 firstdivision
firstdivision's picture

Comparing this to MBA apps, something stinks. 

Wed, 04/29/2015 - 12:44 | 6043160 scubapro
scubapro's picture

 

these purchases, mostly, are not by people getting mortgages.   an oddly large amount of cash buying has persisted for months and months.   

so the real question is where does all this cash come from???   imo, its Securities based lending.....now in excess of $400B which when one includes margin,  means this stock market is more leveraged than ever in history.

 

investmentnews.com  is the only place I have been able to see more than a mention of this product.  but for them they talk about it as a business line, rather than its impact on asset prices.

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