Tuesday, June 02, 2009

Pending Home Sales: April 2009

Today, the National Association of Realtors (NAR) released their Pending Home Sales Report for April showing a 3.2% year-over-year increase in pending home sales nationally and a surprisingly weak -2.9% year-over-year decline in pending sales seen in the heavily foreclosure laden markets of the west region.

Meanwhile, the NARs chief economist Lawrence Yun continues to sing the praises of the latest results government funded handouts for his industry.

“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market, … Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

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 April seasonally adjusted pending home sales results and draw your own conclusion:

  • Nationally the index increased 3.2% as compared to April 2008.
  • The Northeast region increased 0.8% as compared to April 2008.
  • The Midwest region increased 11.1% as compared to April 2008.
  • The South region increased 3.5% as compared to April 2008.
  • The West region decreased 2.9% as compared to April 2008.