FXStreet (Delhi) – Research Team at Nomura, notes that the US pending home sales index declined by 0.9% in November, below expectations of an increase of 0.7%, after increasing by a revised 0.4% in October (previously reported as +0.2%).
Key Quotes
“Sales declined in the Northeast and West regions, but the decline in the West was outsized at 5.5%. Pending home sales tend to lead existing home sales by a couple of months, so the data today would usually be suggestive of a slower pace of existing home sales in December. However, possibly due to a one-off factor (new regulations that possibly led to delays in contract closings in November) that caused a steep drop in existing home sales in November, we do expect to see a bounce back in existing home sales in December.”
“On a y-o-y basis, the pending home sales index was up 5.1%, indicative of the solid improvement in the housing market this year. However, we expect the pace of sales to grow at a slower pace in 2016 as the tight supply of homes available for sale keeps some potential buyers off the market.”
(Market News Provided by FXstreet)