Figures: Home sales in the US dropped 2.6% in October to 1
What happened: The NAR index, which covers the contract signing for real estate sales, was 6.7% lower than a year ago. The report missed the Econoday consensus for an unchanged reading.
Contract signing is typically 45 days before closure, so the upcoming release of home sales is considered the lead indicator for the report on existing home sales.
In October, pending Sales in the Northeast increased by 0.7%. It was the only region where there was an increase. Turnover in the Midwest fell by 1.8%, in the South by 1.1% and in the West by 8.9%.
Large Image: The case gets darker. The Realtors trading group now expects a decline in real estate holdings of 3.1% in 2018 and a further 0.4% in 2019. The group also expects a price decline of 2.5% for next year.
Read: We are probably at peak times. This means what that means.
What They Say: Economists were shuffled because of signals from the real estate market, even though the warning signs are harder to ignore.
As home sales fall and inventory levels rise, as we've seen in recent months, this is usually not a good sign for the economy. pic.twitter.com/UnvWdZQ3cq
– Leonard Kiefer (@lenkiefer)) November 28, 2018
"After all, we see a strike by shoppers this year as potential home buyers are sick of it Stephen Stanley, Chief Economist at Amherst Pierpont Securities, said that they are outperforming real estate prices, offering scarce real estate for sale, and ultimately raising mortgage rates. "The slowdown in property price appreciation in recent months should help to bring the real estate market into a better balance."
Market Reaction: The yield on ten-year US government bonds
has withdrawn in recent weeks, which should give home buyers a lift in mortgage rates if demand is still there.
Read: This chart shows the dizzying momentum in the housing market