Following the bounces in new- and existing-home sales in October, all eyes are on Pending Home Sales to complete the trifecta of 'proof' that housing is back baby... and it did rising 3.5% MoM (beating expectations of a 1.0% gain). The driver of the surge was The South (up 7.4% MoM) as September's 3% hurrican tumble is erased.
September's data was revsised slightly lower (from 0.0% to -0.4%) but October's jump is the biggest since Feb..
The surprise surge was driven by a huge rebound in The South:
- Northeast up 0.5%; Sept. rose 1.2%
- Midwest up 2.8%; Sept. rose 1.4%
- South up 7.4%; Sept. fell 3%
- West fell 0.7%; Sept. rose 1.5%
(note- the 2010 surge and purge was the pre- and post- moves around the homebuyer tax credits' expiration"
“Home shoppers had better luck finding a home to buy in October, but slim pickings and consistently fast price gains continue to frustrate and prevent too many would-be buyers from reaching the market,” Lawrence Yun, NAR’s chief economist, said in a statement.
“Until new home construction climbs even higher and more investors and homeowners put their home on the market, sales will continue to severely trail underlying demand.”