Pending Home Sales Collapse
This morning’s economic number saw a blood bath in the Pending Home Sales which dropped a whopping -4% MoM and a massive -38.6% decline YoY. This “leading” indicator does not bode well for the next few months in regards to new sales and we are looking at a very dark winter for housing indeed. The lowest YoY decline in the over 2 decades, only topped by the post Covid decline:
US bond yields are actually higher on the news as market participants still believe Powell and Co. are going to battle this out vs the bond market investors and continue to be overly hawkish, despite all the data telling us that a major slowdown is here and will worsen.
Just a few weeks ago NAR’s Chief Economist Lawrence Yun was quoted in this Boston Agent article:
We would love to ask him about this mornings numbers and how in the world the National Association of Realtors thinks prices will remain stable? He also mentioned rents rising…hmm we are curious as to what data he is actually using and seeing, because we just don’t see it and after this mornings numbers…well unless your head is buried in the sand, the prospects for future price gains in housing for 2023 seems dismal!
Ok we will be back later with some technical charts going into year end.
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