FXstreet.com (Barcelona) - Pending home sales have declined in December for the second consecutive time although the decrease has been softer than in November, according to the National Association of Realtors.
In December, pending home sales have decreased 1.5% from November to December, following a 2.6% decrease in the previous month. In the last twelve months, pending home sales have decreased 24.2%.
According to Ian Shepherdson, Chief U.S. Economist High Frequency Economics, Ltd the declines of the last two months have returned Pending Home sales to the levels they were in summer: The November and December declines have just put the index back more or less to where it was in August. Pending sales collapsed in the summer during the market turmoil but then rebounded in Sep/Oct. The two latest drops have reversed that rebound.
From now on, according to Shepherdson, the future does not seem very clear so pending home sales might continue declining: This likely does not mean the index has hit bottom, though. Consumer confidence has weakened further, the rate of fall of home prices has accelerated and the labor market has deteriorated, so we are of the view that the outlook for housing continues to darken.