Pending Home Sales Index Rose 2.0% In December
(For December 2010)
Pending home sales index rose 2.0% In December vs. revised (down from 3.5%) rise of 3.1% in November. On year level, the index is down 4.2%.
To repeat: Generally rising pending home sales are positive for the economy, but currently and until excess unsold housing inventory is cleared rising pending home sales index could mean more foreclosed homes are being sold at depressed prices which puts additional pressure on home prices. Thing to watch.
Chart 1. Pending Home Sales Index
