Pending home sales up +0.1% in May

 

• Pending home sales index rose 0.1% in May after a revised 7.1% in April.
• Pending home sales in may were mixed regionally
• +3.1% Northeast
• +2.2% in West
• -1.7% in South
• -1.3% in Midwest

"Strong activity by entry level buyers is helping to absorb inventory and allow some existing owners to make a trade," - Lawrence Yun (NAR's chief economist)

• The federal government’s $8,000 tax credit for first time home buyers appear to be working, which can be used for the down payment.  On top of the other incentives offered by state & local governments.
• Housing affordability index fell to 171.6 in May from a revised 178.8 in April.  The April reading was the highest on record dating back to 1970.
• Index remains at historic highs.

"Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions," Lawrence Yun

Source: MarketWatch, CNBC, RTT News & Reuters