"Economists are pessimists: they've predicted 8 of the last 3 depressions."
--Barry Asmus

The Required Disclosures

The information presented in this blog and its individual articles is provided for informational use only and should not be considered investment advice or an offer for a particular security. The contents reflect the views and opinions of the individual writer as of the date the article was written and do not necessarily represent the views of the individual writer on the current date. They also do not in any way, shape, or form represent the views of the Firm Never-To-Be-Named. Any such views are subject to change at any time based upon market or other conditions and The Great Redoubt and its individual writers disclaim any responsibility to update such views. These views should not be relied on as investment advice, and because investment decisions for any security are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any contributor to The Great Redoubt. Neither The Great Redoubt nor any individual author can be held responsible for any direct or incidental loss incurred by applying any of the information offered. Please consult your tax or financial advisor for additional information concerning your specific situation.

Friday, May 27, 2011

Pending Home Sales

Contender number two in our mixed bag of economic data is "pending home sales", an index maintained by the National Association of Realtors that tracks the number of pending home sales[1].  These are defined as a sale in which a contract is actually signed, but the sale has not yet closed.  The Street looks at this index, but doesn't weight it as heavily as the new home sales report or the existing home sales report.
Last month, the index was up 5.1% for the month of March, to a level of 94.1.  We have no analyst expectations, so let's go straight to the NAR for the press release.  In April, the Pending Home Sales Index fell 11.6%  to a level of 81.9.  The chief economist for the NAR, Lawrence Yun, attributes the decline in contract signings to a variety of factors including "sharply rising oil prices, widespread severe weather with the heaviest precipitation in 20 years, and a sudden rise in unemployment claims."
[1]  "Well, duh", right?

No comments:

Post a Comment