Pending home sales in May bounced strongly from the April weakness with a 44.3% m/o/m gain after the 22% drop in the month prior and 21% decline in March. For perspective though, the index level of 99.6 compares with 111.4 in February and 108.9 in January but of course getting close to what was lost.
The NAR said “More listings are continuously appearing as the economy reopens, helping with inventory choices. Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.”
Bottom line, this figure measures the contract signings of existing homes and having in person open houses helped as has the growing desire to live in the suburbs from the cities. Of course low mortgage rates help too but mortgage rates have been low for a while. I’ve said before, after this pent up demand for single family homes abate, the industry should more ebb and flow with the jobs picture as well as wages.
PENDING HOME SALES INDEX
Peter is the Chief Investment Officer at Bleakley Advisory Group and is a CNBC contributor.