Pending Home Sales: March 2009

Today, the National Association of Realtors (NAR) released their Pending Home Sales Report for March showing a 1.1% year-over-year increase in pending home sales nationally but a surprisingly weak 1.7% year-over-year gain in pending sales seen in the heavily foreclosure laden markets of the west region.

Meanwhile, the NARs chief economist Lawrence Yun continues to spin his foolishness calling the latest results potential “leading edge” of increased buying spurred on by government funded handouts for his industry.

“This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment,”

The following chart shows the national pending homes sales index since 2005 compared monthly. Notice that each year, the months value is decreasing fairly consistently (click for larger version).

The following chart shows the national pending home sales index along with the percent change on a year-over-year basis as well as the percent change from the peak set in 2005 (click for larger version).

Look at the Match seasonally adjusted pending home sales results and draw your own conclusion:

• Nationally the index increased 1.1% as compared to March 2008.
• The Northeast region declined 24.1% as compared to March 2008.
• The Midwest region increased 8.2% as compared to March 2008.
• The South region increased 7.7% as compared to March 2008.
• The West region increased 1.7% as compared to March 2008.