US Pending Home Sales fail to repeat a strong June - Wells Fargo

According to analysts from Wells Fargo, July’s pending home sales were underwhelming, with signed contracts falling 0.8 percent while June’s data were also revised slightly lower, suggesting existing home sales will remain sluggish going into the fall, explained analysts from Wells Fargo.

Key Quotes: 

“Pending home sales once again fell well short of expectations, contracting 0.8 percent in July compared to an expected 0.3 percent gain. Pending sales measure signed contracts and typically lead existing home sales by 1 to 2 months. The West was the only region with pending sales gains in the month at 0.6 percent, while the South was the weakest region, contracting 1.7 percent.”

“The housing market remains extremely competitive as demand continues to grow at a pace that new listings cannot satisfy. Inventory is currently 9.0 percent lower than this time last year.”

“The flooding in Houston will likely depress home sales in coming months. Texas accounts for 9.5 percent of the nation’s existing home sales, with the greater Houston area accounting for around one quarter of that.”