Headline: Up 2.1% month-over-month
Consensus: 0.7% increase month-over-month
Analysis: Last month, the pending home sales index fell a massive 2.8%, so this is a sharp rebound. We’re still down 8.2%, year-over-year, from February 2010, according to the National Association of Realtors.
Lawrence Yun, NAR chief economist, says it’s important to look at the broader trend. “Month-to-month movements can be instructive, but in this uneven recovery it’s important to look at the longer term performance,” he said. “Pending home sales have trended up very nicely since bottoming out last June, even with periodic monthly declines. Contract activity is now 20 per cent above the low point immediately following expiration of the home buyer tax credit.
Earlier this month, we got some more bad news on housing, when existing home sales fell 9.6%.
SocGen analyst Albert Edwards has called U.S. housing optimists “nuts.”