The Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 3.5 percent to 96.6 in December from 100.1 in November but is 5.6 percent above December 2010 when it was 91.5. The data reflects contracts but not closings.
Economists forecast -1% for December but the print was at -3.5%. This comes on the heels of +7.3 surge in November.
To put Pending Home Sales in perspective, they are about at where they were at this time last year, the year before, the year before, etc. This is a NSA chart, so you won’t see the big spike in PHS in November.
FHFA Purchase Only House Price Index
Now for some good news. FHFA reported this morning that Month Over Month house prices increased from October to November of 2011 SA.
While one month does not constitute a rally, it is clearly better than down 1%.
FNC House Price Index Fell 0.4%
On the other hand, the latest FNC Residential Price Index™ (RPI) indicates that U.S. home prices continued to decline despite recent signs of job recovery, rising home sales, and new residential construction. Down 0.4% from the previous month, November marks the fourth consecutive month-to-month declines in residential property value.
