Pending Home Sales Suffered Worst Annual Decline Ever In 2022, Despite December Surge

While existing home sales slipped to cycle lows in December, new home sales bounced and this morning analysts were surprised to see pending home sales rise 2.5% MoM (against expectations of a 1.0% decline), and November’s decline was revised higher…

Source: Bloomberg

This is the best MoM rise since Oct 2021, and while the YoY decline improved marginally, the 34.3% is the greatest annual decline in history

Source: Bloomberg

Pending sales rose in two of four regions in the month, led by a 6.4% gain in the West and a 6.1% pickup in the South.

“This recent low point in home sales activity is likely over,” Lawrence Yun, NAR chief economist, said in a statement.

“Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”

However, remember that Consumers’ views of homebuying conditions are hovering near historic lows, based on University of Michigan survey data.