Housing Data Continues to Be Uneven

 

After a burst of activity, it was not surprising to see the National Association of Realtors Pending Home Sales index (seasonally adjusted annual rate), which is based on the acceptance of new sales agreements for existing homes, fall 16 percent in November. Even so, the index was 15.5 percent higher than the same month a year earlier, a hopeful sign that housing has turned the corner and that the extension and expansion of the tax credit is having some early, positive effect.

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Existing single-family home sales showed their third month of improvement in November, rising to a seasonally adjusted annual rate of 5.77 million. This was the highest monthly sales figure since the 5.87 million reported in April 2006.

However, since existing home sales are based on settlements that do not capture new contracts but rather reflect sales agreements from earlier months, many of the November sales resulted from pressure on buyers to close by the end of that month to qualify for the then expiring first-time home buyers tax credit. Home sales will continue to spur on the economy and lend to recovery in the landscape industry.

Similarly, new home sales, which are based on signed contracts with a deposit, fell in November to a seasonally adjusted annual rate of 355,000, their lowest level since April 2009. That was down 11.3 percent from October?EUR??,,????'?????<